Monopoly, price discrimination, and rent-seeking

Nava Kahana, Eliakim Katz

    Research output: Contribution to journalArticlepeer-review

    2 Scopus citations


    This paper considers the effect of rent-seeking on the welfare implications of price discrimination by a monopolist. It is shown that even when rent-seeking fully dissipates monopoly profits, it is possible for price discrimination to raise social welfare. Thus, the recognition that monopoly profits attract resource using, socially wasteful activities, does not necessarily negate price discrimination as a defence of monopoly.

    Original languageEnglish
    Pages (from-to)93-100
    Number of pages8
    JournalPublic Choice
    Issue number1
    StatePublished - Jan 1990


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