Optimal Price Discrimination
Since the raising of revenue to finance declining cost industries which price output according to marginal cost by price discrimination has been proposed (Lipsey and Steiner (1972) and Samuelson (1972)), we direct attention to the general problem of a central authority optimally raising revenue by price discrimination. We derive conditions which comprise the modern versions of the Ramsey Tax Rule as special cases.
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|Date of creation:||1976|
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