Intertemporal price discrimination and resale price maintenance
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    Abstract:

    Intertemporal price discrimination is widespread in markets. Many theoretical works have studied the motives and conditions of implementing intertemporal price discrimination. Based on the Salop model, the paper analyzes intertemporal price discrimination within a vertical differentiated duopoly competition market by constructing a model which distinguishes different consumers according to evaluation value and waiting cost. The results show that manufacturers in ‘intertemporal price discrimination ‘ game obtain more profits than those in ‘uniform pricing’ game under certain circumstances. Therefore, resale price maintenance not only helps manufacturers differentiate consumers, but also helps manufacturers implement intertemporal price dis-crimination which brings more profits while consumers suffer losses. The above conclusions are crucial complements to the existing theory, and may facilitate government antitrust practices.

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  • Online: April 12,2018
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