Abstract
Ever since Pigou's (I929) classic work, economists have been in widespread agreement that any theoretical analysis of the problems of price discrimination must address itself to the question of whether total output is greater or less in simple monopoly than it is in third-degree price discrimination. More than 50 years ago, Joan Robinson (I933) advanced the local 'adjusted concavity' criterion to answer this question. Robinson considered a monopoly selling in two sub-markets and advanced two fundamental propositions: (A) If the more elastic demand curve is concave and the less elastic curve is a straight -line or is convex, then the total output will be greater under discrimination than under simple monopoly (p. I93). (B) If both curves are strictly concave or convex, output under discrimination will be greater (less) than the simple monopoly output according to whether the 'adjusted concavity' is smaller for the more (less) elastic demand curve (p.
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