A Note on Third-Degree Price Discrimination in Oligopoly

In this note, we use a two-stage game to examine the domination of uniform price by third-degree price discrimination in a -firm, two-market model. Not surprisingly, when , a monopoly case results. Accordingly, the price, output, profit, and welfare effects under third-degree price discrimination in an oligopoly with symmetric linear demands and constant marginal costs are the same as the results obtained in monopoly price discrimination.