# Questions tagged [price-discrimination]

Situations in which different consumers pay different prices (or, more precisely, different price-cost margins).

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### Why should electricity network capacity costs according to long run marginal cost pricing be paid by peak consumers only?

Electricity is distributed in a network with a max capacity $K$. Let $Y_i(t)$ be demand of person $i$ at time $t$. Then at no time $t \in [0,T]$ can $\sum_i Y_i(t) > K$ or networks breaks down. ...
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### What is the Economic Rationale for Discounted Early-Bird Parking?

Most urban parking structures/lots in the US seem offer so-called "early bird" discounts for parking, where a substantially discounted flat rate applies to customers entering before a certain cutoff ...
1 vote
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### Price discrimination

If I have 3 consumers who I want to sell package 1, 2 and 3 to respectively. Meaning consumer 1 I would like to sell package 1 to, consumer 2 I would like to sell package 2 to and so on. The packages ...
1 vote
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### When there is a third degree price discrimination, why is the total MR curve kinked at the top?

I know that the total MR = MR of student + MR of adult, but wy is it kinked at the top?
1 vote
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### Menu-pricing with three consumer groups

I want to analyze the following setting: An entrepreneur (with monopoly power) sells a product in two periods. In period 1 there are two consumer groups (denoted by 1 and 2) and in period 2 there is ...
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### In which market structures does the producer employ price discrimination?

I was recently reading up on the Price Discrimination, first second and third degree. Although the author has laid out the concept neatly, there are no connections established between this concept and ...
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### How to estimate empirically a demand curve

Suppose I have a small business that sell ice creams. An Icecream cost 2\$, and every day I have different values of sales. ...
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### Increasing prevalence of price discrimination

It seems to me that the variation of prices for similar or identical products has grown over the last decade. A few examples: On major air routes, price differences between low-cost and traditional ...
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### Monopoly second degree discrimination - two part tariff

In a Monopoly with second degree discrimination - two part tariff will the consumer with higher demand always pay a higher entrance fee and lower unit price than the cunsumer with lower demand or is ...
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### Fuel trading a market with near-perfect competition

Can I classify the fuel trading market (wholesalers buying and selling fuel by phone) as a market with near-perfect competition? It is a market with many sellers and buyers, the product is ...
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### Is net neutrality not important in a competitive market of internet providers?

In my understanding, allowing ISP to throttle sites that use a lot of traffic is just price discrimination. The ISP will charge sites like Netflix, which will then pass the cost to Netflix consumers. ...
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