Monopoly power, abuse of dominance and Price discrimination
3 important questions on Monopoly power, abuse of dominance and Price discrimination
With which 2 measures can we measure price distortion?
Social welfare and DWL
if the demand is inelastic than the DWL will be equal to zero
if the demand is inelastic than the DWL will be equal to zero
What is yardstick control?
shareholders can use the performance of firms with similar technologies as a yardstick to control the performance of the managers
What is thrird degree price discrimination?
May observe some signal that is related to the consumer's preferences (age, gender, location)
uses a direct signal about demand, whereas 2nd selects indirectly between consumers through their choice between different packages
able to divide the market in n segments of consumers
uses a direct signal about demand, whereas 2nd selects indirectly between consumers through their choice between different packages
able to divide the market in n segments of consumers
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