Detalle Publicación

Seasonality, price discrimination, and welfare

Título de la revista: JOURNAL OF ECONOMICS
ISSN: 0931-8658
Volumen: 120
Número: 3
Páginas: 269 - 277
Fecha de publicación: 2017
Resumen:
We discuss a potential limitation to a widely accepted result, namely that an output increase is a necessary condition for welfare to increase with price discrimination. We use a theoretical model to show that the existence of seasonal demand fluctuations may allow for a simultaneous reduction in verage output and increase in average welfare. We also discuss a number of extensions of our basic model.