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Direct Welfare Analysis of Relative Price Regulation *
Author(s) -
Vickers John
Publication year - 2020
Publication title -
the journal of industrial economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.93
H-Index - 77
eISSN - 1467-6451
pISSN - 0022-1821
DOI - 10.1111/joie.12217
Subject(s) - welfare , convexity , economics , economic surplus , relative price , microeconomics , public economics , econometrics , financial economics , market economy
The paper synthesizes and develops the welfare analysis of regulating relative prices, for example price differences, of which banning price discrimination is a special case. Welfare results are derived directly by convexity arguments using functions of welfare levels. The method is also used to obtain results about effects on consumer surplus.