IDEAS home Printed from https://ideas.repec.org/a/taf/jeduce/v37y2006i2p236-243.html
   My bibliography  Save this article

Teaching Third-Degree Price Discrimination

Author

Listed:
  • David K. Round
  • Ron P. Mclver

Abstract

Abstract: Third-degree price discrimination is taught in almost every intermediate microeconomics class. The theory, geometry, and the algebra behind the concept are simple, and the phenomenon is commonly associated with the sale of many of the goods and services used frequently by students. Classroom discussion is usually vibrant as students can relate their experiences of being on the receiving end of third-degree price discrimination, usually to their advantage. However, the precision of the language used in the exposition of the theory in textbooks is generally less precise than one would hope for, leading students to confuse slope and elasticity. The authors ask textbook writers to provide greater precision in their explanation of why differing elasticities are associated with the prices paid by two (or more) distinct groups of buyers facing third-degree price discrimination.

Suggested Citation

  • David K. Round & Ron P. Mclver, 2006. "Teaching Third-Degree Price Discrimination," The Journal of Economic Education, Taylor & Francis Journals, vol. 37(2), pages 236-243, April.
  • Handle: RePEc:taf:jeduce:v:37:y:2006:i:2:p:236-243 DOI: 10.3200/JECE.37.2.236-243
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.3200/JECE.37.2.236-243
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mieszkowski, Peter & Zodrow, George R, 1989. "Taxation and the Tiebout Model: The Differential Effects of Head Taxes, Taxes on Land Rents, and Property Taxes," Journal of Economic Literature, American Economic Association, pages 1098-1146.
    2. Edward Clarke, 1971. "Multipart pricing of public goods," Public Choice, Springer, vol. 11(1), pages 17-33, September.
    3. John D. Donahue, 1997. "Tiebout? Or Not Tiebout? The Market Metaphor and America's Devolution Debate," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 73-81, Fall.
    4. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    5. repec:cup:apsrev:v:87:y:1993:i:03:p:702-713_10 is not listed on IDEAS
    6. repec:cup:apsrev:v:89:y:1995:i:03:p:705-709_09 is not listed on IDEAS
    7. Theodore Groves & John Ledyard, 1977. "Some limitations of demand revelaing processes," Public Choice, Springer, vol. 29(2), pages 107-124, March.
    8. repec:cup:apsrev:v:83:y:1989:i:03:p:711-728_08 is not listed on IDEAS
    9. Rubinfeld, Daniel L & Shapiro, Perry & Roberts, Judith, 1987. "Tiebout Bias and the Demand for Local Public Schooling," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 426-437, August.
    10. Kollman, Ken & Miller, John H & Page, Scott E, 1997. "Political Institutions and Sorting in a Tiebout Model," American Economic Review, American Economic Association, pages 977-992.
    11. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-631, July.
    12. Brueckner, Jan K., 2000. "A Tiebout/tax-competition model," Journal of Public Economics, Elsevier, pages 285-306.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. M Borland & R Howson, 2016. "A problem with the course presentation of the single-price alternative to 3rd-degree price discrimination," Economic Issues Journal Articles, Economic Issues, vol. 21(1), pages 87-97, March.
    2. Aguirre Pérez, Iñaki, 2011. "Welfare Effects of Third-Degree Price Discrimination: Ippolito Meets Schmalensee and Varian," IKERLANAK 2011-54, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jeduce:v:37:y:2006:i:2:p:236-243. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/VECE20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.