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Third-Degree Price Discrimination in the Presence of Asymmetric Consumption Externalities

✍ Scribed by Takeshi Ikeda; Tatsuhiko Nariu


Book ID
106387153
Publisher
Springer US
Year
2008
Tongue
English
Weight
181 KB
Volume
9
Category
Article
ISSN
1566-1679

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## Abstract In this study we demonstrate how a reference price may affect the degree of price rigidity/flexibility. For this, we construct a model of reference‐price formation, which we use to analyze the effect of asymmetric reference price (cut ‘effects’) on the profitability of price promotions.