Timeline for Monopoly second degree discrimination - two part tariff
Current License: CC BY-SA 3.0
3 events
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| Nov 22, 2015 at 11:16 | comment | added | Herr K. | @Doron: In that case you'd need to specify the problem more specifically. If I understand you correctly, you're referring to the kind of price discrimination where a firm offers different price-quantity pairs, and consumers of different types would select different bundles. That case is usually different from two-part tariff, which involves only prices. Can you define explicitly the firm's profit and different types of consumer's utility functions? | |
| Nov 21, 2015 at 21:13 | comment | added | Doron | Thank you for your answer. But what about the case when the monopoly cannot ditinguish between the two types of consumers? is it possible that the P1 > P2 or T2 > T1? | |
| Nov 21, 2015 at 19:49 | history | answered | Herr K. | CC BY-SA 3.0 |