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Price Discrimination and Three Part Tariffs in a Duopoly

Author

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  • Jensen, S.

Abstract

The paper studies how second degree price discrimination can be implemented in a duopoly with differentiated products. Two firms serve consumers having heterogeneous willingness to pay for the good, willingness to pay being private knowledge. Consumers choose from a menu of tariffs and are subsequently billed according to the chosen tariff. Although product differentiation enables the firms to implement price discrimination, it is shown that competition have important effect on the tariff structure.

Suggested Citation

  • Jensen, S., 2000. "Price Discrimination and Three Part Tariffs in a Duopoly," Papers 3/2000, Norwegian School of Economics and Business Administration-.
    • Handle: RePEc:fth:norgee:3/2000
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    PRICES ; ASYMETRIC INFORMATION ; OLIGOPOLIES;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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