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Second-Degree Price Discrimination: A Graphical and Mathematical Approach

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  • Chemi Gotlibovski
  • Nava Kahana
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    Abstract

    The authors use a relatively simple diagram accompanied by mathematical analysis to compare two pricing strategies: price-quantity packages and a two-part tariff. This is done both from the monopolist's point of view and from the welfare point of view. The authors show that in the case of two consumer types, the price-quantity packages strategy dominates two-part tariff pricing from the monopolist's point of view. However, social welfare may be higher under two-part tariff pricing.

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    File URL: http://hdl.handle.net/10.3200/JECE.40.1.068-079
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal The Journal of Economic Education.

    Volume (Year): 40 (2009)
    Issue (Month): 1 (January)
    Pages: 68-79

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    Handle: RePEc:taf:jeduce:v:40:y:2009:i:1:p:68-79

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    Web page: http://www.tandfonline.com/VECE20

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    Web: http://www.tandfonline.com/pricing/journal/VECE20

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    Cited by:
    1. Juan Pablo Herrera Saavedra & Jacobo Campo Robledo & Natalia Cantor Vargas & Jenny-Paola Lis-Gutiérrez, 2013. "Una propuesta metodológica de discriminación de segundo grado: el caso de tarifas multiclase para el registro marcario en Colombia durante el año 2012," ESTUDIOS ECONÓMICOS SIC 010746, SUPERINTENDENCIA DE INDUSTRIA Y COMERCIO.

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