The welfare impacts of discriminatory price tariffs
Danias, Nikolaos and Swales, J Kim (2016) The welfare impacts of discriminatory price tariffs. Discussion paper. University of Strathclyde, Glasgow.
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Abstract
This paper looks at the use of asymmetric tariffs as a regulatory instrument. We use a monopolistic market setup with two markets and we introduce price controls in one of the two. The purpose of the regulator is to maximise consumer welfare through this price discriminatory practice. We consider cases where the welfare of the consumers in the two markets is weighted equally and cases where it is not. In some cases we allow for the two markets to be linked through a monopsonistic input market. The paper focuses on the welfare implications of this regulatory approach, with the firm operating under a profit restriction. Results suggest that having only one price-controlled market is in certain cases a good option from a welfare perspective.
ORCID iDs
Danias, Nikolaos ORCID: https://orcid.org/0000-0003-0678-5630 and Swales, J Kim;-
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Item type: Monograph(Discussion paper) ID code: 60049 Dates: DateEvent28 June 2016PublishedNotes: Published as part of the Department of Economics "Discussion Papers in Economics", No. 16-09. Subjects: Social Sciences > Economic Theory
Social Sciences > Social pathology. Social and public welfareDepartment: Strathclyde Business School > Economics Depositing user: Pure Administrator Date deposited: 03 Mar 2017 14:41 Last modified: 27 Sep 2024 01:30 Related URLs: URI: https://strathprints.strath.ac.uk/id/eprint/60049