Author: Youngsun Kwon
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
This paper solves a simple model of third-degree price discrimination assuming two independent linear demands and discusses the effects of price discrimination on monopoly profit, consumer surplus, and social welfare. In addition, using a simple model, this paper shows that the probability that price discrimination raises social welfare increases as the preferences or incomes of consumer groups become more heterogeneous. The virtual aggregated demand curve of the price-discriminating monopoly, corresponding to its aggregated marginal revenue curve, is derived. The curve is non-linear and lies above the aggregated demand curve of simple monopoly. The results of this paper may be used to explain to students the effects of third-degree price discrimination on market outcomes.
Third-Degree Price Discrimination Revisited
Author: Youngsun Kwon
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
This paper solves a simple model of third-degree price discrimination assuming two independent linear demands and discusses the effects of price discrimination on monopoly profit, consumer surplus, and social welfare. In addition, using a simple model, this paper shows that the probability that price discrimination raises social welfare increases as the preferences or incomes of consumer groups become more heterogeneous. The virtual aggregated demand curve of the price-discriminating monopoly, corresponding to its aggregated marginal revenue curve, is derived. The curve is non-linear and lies above the aggregated demand curve of simple monopoly. The results of this paper may be used to explain to students the effects of third-degree price discrimination on market outcomes.
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
This paper solves a simple model of third-degree price discrimination assuming two independent linear demands and discusses the effects of price discrimination on monopoly profit, consumer surplus, and social welfare. In addition, using a simple model, this paper shows that the probability that price discrimination raises social welfare increases as the preferences or incomes of consumer groups become more heterogeneous. The virtual aggregated demand curve of the price-discriminating monopoly, corresponding to its aggregated marginal revenue curve, is derived. The curve is non-linear and lies above the aggregated demand curve of simple monopoly. The results of this paper may be used to explain to students the effects of third-degree price discrimination on market outcomes.
Theory of Perfect Price Discrimination Revisited
Author: Sang O. Park
Publisher:
ISBN:
Category : Price discrimination
Languages : en
Pages : 128
Book Description
Publisher:
ISBN:
Category : Price discrimination
Languages : en
Pages : 128
Book Description
Direction of Price Changes in Third-degree Price Discrimination
Author: David Arthur Malueg
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ISBN:
Category :
Languages : en
Pages : 10
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 10
Book Description
Third-degree Price Discrimination in the Age of Big Data
Author: George Charlson
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ISBN:
Category :
Languages : en
Pages :
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Third Degree Price Discrimination and Moral Hazard
Author: Stefan Felder
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Category :
Languages : en
Pages : 7
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 7
Book Description
Output and Welfare Implications of Monopolistic Third-degree Price Discrimination
Author: Richard Schmalensee
Publisher:
ISBN:
Category : Price discrimination
Languages : en
Pages : 14
Book Description
Publisher:
ISBN:
Category : Price discrimination
Languages : en
Pages : 14
Book Description
Third-Degree Price Discrimination
Author: Sylvain Weber
Publisher:
ISBN:
Category :
Languages : en
Pages : 14
Book Description
The objective of this paper is to assess how the marginal revenue of a monopoly should be plotted when the market is segmented between consumers with different demands, both in the discriminating and non-discriminating cases. The presentations offered by industrial organization textbooks concerning third-degree price discrimination are not always clear, and we believe this is due to the fact that the marginal revenue is different for both types of monopolies, even though the demands they face are absolutely identical. The quantity produced in equilibrium can therefore diverge significantly if price discrimination is feasible or not. Under certain circumstances, price discrimination may improve the situation of every market agent, producer as well as consumers.
Publisher:
ISBN:
Category :
Languages : en
Pages : 14
Book Description
The objective of this paper is to assess how the marginal revenue of a monopoly should be plotted when the market is segmented between consumers with different demands, both in the discriminating and non-discriminating cases. The presentations offered by industrial organization textbooks concerning third-degree price discrimination are not always clear, and we believe this is due to the fact that the marginal revenue is different for both types of monopolies, even though the demands they face are absolutely identical. The quantity produced in equilibrium can therefore diverge significantly if price discrimination is feasible or not. Under certain circumstances, price discrimination may improve the situation of every market agent, producer as well as consumers.
Third-Degree Price Discrimination
Author: Edward J. Lopez
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Applied work in price discrimination often treats demand curves among multiple market segments as algebraically additive. Yet the welfare effects of multi-market (third degree) price discrimination depend on the method by which demand segments are added. Treating demands as geometrically additive yields the well known result that discrimination absent an increase in production diminishes Marshallian surplus. But if demands are treated as algebraically additive then discrimination increases welfare relative to uniform pricing. Quantity is identical in the three cases, so the effect is not due to market opening. Nor is the effect due to scale economies since marginal cost is assumed constant. Profit is always greater under discrimination, so the effect is due to distributional changes in consumer surplus. The model is restricted to linear demands and constant marginal cost but can be generalized for future work and policy analysis.
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Applied work in price discrimination often treats demand curves among multiple market segments as algebraically additive. Yet the welfare effects of multi-market (third degree) price discrimination depend on the method by which demand segments are added. Treating demands as geometrically additive yields the well known result that discrimination absent an increase in production diminishes Marshallian surplus. But if demands are treated as algebraically additive then discrimination increases welfare relative to uniform pricing. Quantity is identical in the three cases, so the effect is not due to market opening. Nor is the effect due to scale economies since marginal cost is assumed constant. Profit is always greater under discrimination, so the effect is due to distributional changes in consumer surplus. The model is restricted to linear demands and constant marginal cost but can be generalized for future work and policy analysis.
Third-Degree Price Discrimination and Consumer Surplus
Author: Simon Cowan
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ISBN:
Category :
Languages : en
Pages :
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Third-degree Price Discrimination, Heterogeneous Markets and Exclusion
Author: Yong He
Publisher:
ISBN:
Category : Markets
Languages : en
Pages : 0
Book Description
Publisher:
ISBN:
Category : Markets
Languages : en
Pages : 0
Book Description