In a recent article, Guo and Lai (2022) claim that online third-degree price discrimination improves welfare under certain conditions. I argue that, in the same model, the same results can be obtained even if there are only offline firms. Therefore, welfare improvements cannot be imputed to the existence of online competitors.
Colombo, S., Does online third-degree price discrimination improve welfare?, <<ECONOMICS BULLETIN>>, 2024; (44): 1109-1112 [https://hdl.handle.net/10807/298256]
Does online third-degree price discrimination improve welfare?
Colombo, Stefano
2024
Abstract
In a recent article, Guo and Lai (2022) claim that online third-degree price discrimination improves welfare under certain conditions. I argue that, in the same model, the same results can be obtained even if there are only offline firms. Therefore, welfare improvements cannot be imputed to the existence of online competitors.
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