We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Third-Degree Price Discrimination in the Presence of Subsidies.
- Authors
Felder, Stefan
- Abstract
According to a classical result, a move from uniform pricing to third-degree price discrimination only improves welfare if total output increases. In this paper I show that the classical result fails in the presence of subsidies. This finding appears to be relevant for the pharmaceutical sector where a consumer pays a fraction of the actual drug price due to health insurance coverage.
- Subjects
SUBSIDIES; CONSUMER protection; HEALTH insurance; PHARMACEUTICAL services; PUBLIC welfare; DRUG prices; PRICING -- Social aspects; TAXATION
- Publication
German Economic Review, 2006, Vol 7, Issue 4, p419
- ISSN
1465-6485
- Publication type
Article
- DOI
10.1111/j.1468-0475.2006.00127.x