Title: Tactics of Price Discrimination and Welfare Effects
Abstract: Under perfect competitive market the competitive equilibrium may realize Pareto efficiency, but it is difficult for monopolistic market to provide the level of output at which price equals marginal cost, therefore, the output and price it chooses are not optimal to a society. Monopolistic firm must sort consumers on the basis of some endogenous and exogenous category in order for price discrimination to be a viable strategy. Due to the difference of pricing tactics, different kinds of price discrimination produce different welfare effects.
Publication Year: 2003
Publication Date: 2003-01-01
Language: en
Type: article
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot