Monopoly price discrimination with constant elasticity demand

This paper presents new results on the welfare e¤ects of third-degree price discrimination under constant elasticity demand. We show that when both the share of the strong market under uniform pricing and the elasticity di¤erence between markets are high enough,then price discrimination not only can increase social welfare but also consumer surplus.The Ministerio de Economía y Competitividad(ECO2012-31626, an from the Departamento de Educación, Política Lingüística y Cultua del Gobierno Vasco (IT869-13