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SIM, Seung-Gyu
Department Aoyama Gakuin University Department of International Economics, School of International Politics, Economics and Communication Position Professor |
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| Language | English |
| Publication Date | 2015/03 |
| Type | Academic Journal |
| Peer Review | Peer reviewed |
| Title | Price Discrimination and Sequential Contracting in Monopolistic Input Market |
| Contribution Type | Collaboration |
| Journal | Economics Letters |
| Journal Type | Another Country |
| Publisher | Elsevier |
| Volume, Issue, Page | 128,pp.39-42 |
| Author and coauthor | Hyunchul Kim and Seung-Gyu Sim |
| Details | This paper examines the welfare implication of banning price discrimination in the intermediate goods market in which a monopolistic supplier contracts with asymmetric downstream retailers. We demonstrate that the supplier has a strong incentive to manipulate the interdependent demand structure through sequential contracting whether price discrimination is banned or not, and allowing price discrimination improves social welfare and consumer surplus when sequential contracting is implemented by the supplier. |