Download or read book Comparison between Second and Third Degree Price Discrimination written by Babu Nahata and published by . This book was released on 2006 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: This pedagogical note discusses the differences between second and third-degree price discrimination. The comparison uses four important factors, namely, market segmentation, information about consumers, profit maximization and social welfare. The comparison shows that while market segmentation is a prerequsite for third-degree, it is an equilibrium outcome in second-degree price discrimination. The profit maximization problem is unconstrained under third-degree but it is constrained under second-degree. Both deadweight loss and consumer surplus are positive under third-degree, but they both can be zero under second-degree and the social surplus is maximum.
Download or read book Recent Advances in the Theory of Third Degree Price Discrimination written by Takanori Adachi and published by Springer Nature. This book was released on 2023-07-06 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides an updated overview of the recent progress in the theoretical study of third-degree price discrimination. It is a marketing tactic and is said to be present if the unit price is different across different groups of buyers. Its welfare evaluation is often difficult because it entails two countervailing effects: on one hand, it exploits surplus from consumers who have high willingness-to-pay, but on the other hand, it generates gains from trade from consumers who otherwise would not purchase the good. Recognizing this difficulty, we provide new insights on evaluation of third-degree price discrimination in consideration of network effects and vertical product differentiation. Our analysis is particularly useful for the industries related to information and communication technologies (ICT) because these two elements characterize them. Furthermore, we also study the welfare effects of third-degree price discrimination under imperfect competition other than monopoly. At first, it seems that it may complicate the analysis under monopoly. However, we argue that the main thrusts of analysis under monopoly carry over to the case of oligopoly. We also take into account behavioral aspects and their implications for studying third-degree price discrimination. Overall, this book is designed to provide implications for contemporary management and policy issues by advancing theoretical issues in industrial organization.
Download or read book The Economics of Price Discrimination written by George Norman and published by Edward Elgar Publishing. This book was released on 1999 with total page 624 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume brings together significant articles which have appeared between 1971 and 1997, analyzing the application and effects of price discrimination.
Download or read book Intermediate Microeconomics written by Patrick M. Emerson and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Third Degree Price Discrimination in Two sided Markets written by Alexandre de Cornière and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the welfare effects of third-degree price discrimination by a two-sided platform that enables interaction between buyers and sellers. Sellers are heterogenous with respect to their per-interaction benefit, and, under price discrimination, the platform can condition its fee on sellers' type. In a model with linear demand on each side, we show that price discrimination: (i) increases participation on both sides; (ii) enhances total welfare; (iii) may result in a strict Pareto improvement, with both seller types being better-off than under uniform pricing. These results, which are in stark contrast to the traditional analysis of price discrimination, are driven by the existence of cross-group network effects. By improving the firm's ability to monetize seller participation, price discrimination induces the platform to attract more buyers, which then increases seller participation. The Pareto improvement result means that even those sellers who pay a higher price under discrimination can be better-off, due to the increased buyer participation.
Download or read book Handbook of Industrial Organization written by Richard Schmalensee and published by North Holland. This book was released on 1989-09-11 with total page 1002 pages. Available in PDF, EPUB and Kindle. Book excerpt: Determinants of firm and market organization; Analysis of market behavior; Empirical methods and results; International issues and comparision; government intervention in the Marketplace.
Download or read book Research Handbook on the Economics of Intellectual Property Law written by Ben Depoorter and published by Edward Elgar Publishing. This book was released on 2019 with total page 1504 pages. Available in PDF, EPUB and Kindle. Book excerpt: Both law and economics and intellectual property law have expanded dramatically in tandem over recent decades. This field-defining two-volume Handbook, featuring the leading legal, empirical, and law and economics scholars studying intellectual property rights, provides wide-ranging and in-depth analysis both of the economic theory underpinning intellectual property law, and the use of analytical methods to study it.
Download or read book Essays on Estimating Third degree Price Discrimination written by and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: These three essays study third-degree price discrimination in the U.S. movie theater industry. The first chapter describes datasets used in this study and presents the reduced-form evidence that movie theater chains price-discriminate households without children and households with children. The results are consistent with a model of a simple third-degree price discrimination where movie theater chains choose a regular ticket price and a family ticket price (that is, the sum of the regular ticket price and a child ticket price) separately by each movie theater so that they maximize profits from households with children and households with children. In the second chapter, I estimate demand and supply of a movie theater in a structural model under the price discrimination and the one under no price discrimination, using the unique dataset of ticket prices and theater characteristics including location of movie theaters operating in the U.S. The results show that the model with price discrimination is sharply and statistically well-determined while the model without price discrimination is not, which supports that movie theaters conduct the price discrimination and incorporating it to the structural model significantly improves the estimates. In the third chapter, I conduct counterfactual experiments to study two central topics in the literature of price discrimination. First, I evaluate the price effect of price discrimination by decomposing observed child discounts into cost difference and price discrimination. Then, I evaluate the welfare effect of banning a child discount to see the welfare effect of limiting firm's ability of price discrimination. The result shows that the ban deteriorates the social welfare because of the decrease in demand by households with children while consumers might be better off.
Download or read book Direction of Price Changes in Third degree Price Discrimination written by David Arthur Malueg and published by . This book was released on 1992 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Third degree Price Discrimination Heterogeneous Markets and Exclusion written by Yong He and published by . This book was released on 2002 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Economics of Information Technology written by Hal R. Varian and published by Cambridge University Press. This book was released on 2004-12-23 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Economics of Information Technology is a concise and accessible review of some of the important economic factors affecting information technology industries. These industries are characterized by high fixed costs and low marginal costs of production, large switching costs for users, and strong network effects. These factors combine to produce some unique behavior. The book consists of two parts. In the first part, Professor Varian outlines the basic economics of these industries. In the second part, Professors Farrell and Shapiro describe the impact of these factors on competition policy. The clarity of the analysis and exposition makes this an ideal introduction for undergraduate and graduate students in economics, business strategy, law and related areas.
Download or read book Quality Differences Third Degree Price Discrimination and Welfare written by Francisco Galera and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We propose a model with two markets to analyze the welfare implications of price discrimination with quality differences. In each market a local firm that operates in that market only competes against a global firm that operates in both markets. Local firms produce higher-quality goods than the global firm. If the quality levels of the local firms' products are the same, price discrimination is never welfare-decreasing. If they differ, discrimination is welfare-increasing if quantity increases. Because of a positive allocation effect of price discrimination, there are parameter values such that welfare increases while total output decreases with price discrimination.
Download or read book Market Foreclosure Output and Welfare Under Second Degree Price Discrimination written by Yong Chao and published by . This book was released on 2019 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: We compare second-degree price discrimination with uniform pricing using two linear demands. Our comparison shows that second-degree price discrimination can result in a welfare-enhancing market foreclosure (both markets are served under uniform pricing but one of them is excluded under second-degree price discrimination) because the resulting foreclosure can increase both the total output and the total surplus. The total surplus under second-degree price discrimination could also be lower without the foreclosure. We also contrast our results with well-known results under third-degree price discrimination.
Download or read book Third Degree Price Discrimination Revisited written by Youngsun Kwon and published by . This book was released on 2003 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper solves a simple model of third-degree price discrimination assuming two independent linear demands and discusses the effects of price discrimination on monopoly profit, consumer surplus, and social welfare. In addition, using a simple model, this paper shows that the probability that price discrimination raises social welfare increases as the preferences or incomes of consumer groups become more heterogeneous. The virtual aggregated demand curve of the price-discriminating monopoly, corresponding to its aggregated marginal revenue curve, is derived. The curve is non-linear and lies above the aggregated demand curve of simple monopoly. The results of this paper may be used to explain to students the effects of third-degree price discrimination on market outcomes.
Download or read book Microeconomics Theory And Applications written by D. N. Dwivedi and published by Pearson Education India. This book was released on 2002-09 with total page 648 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is intended to be a comprehensive and standard textbook for undergraduate students of Microeconomics. Apart from providing students with sufficient study material for examination purpose, it aims at making them understand economics. An effort has been made to explain abstract and complex microeconomic theories in a simple and lucid language without sacrificing analytical sophistication. The subject matter has been structured in a systematic manner without leaving gaps for the readers to fill in. Though the approach is non-mathematical, simple algebra has been used to give a concrete view of economic concepts and theories and to show the applicability of economic theories in decision making.
Download or read book IP and Antitrust written by Christina Bohannan and published by Aspen Publishers Online. This book was released on 2013 with total page 2686 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Third degree Price Discrimination Versus Uniform Pricing written by Dirk Bergemann and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
