Download or read book Third Degree Price Discrimination with Fairness Concerned Consumers written by Tomohisa Okada and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies monopolistic third-degree price discrimination, incorporating consumers' fairness concerns: discriminatory pricing antagonizes consumers and may reduce their demand. In contrast to the findings in previous studies, we show that consumers' concerns regarding price inequalities may deter discriminatory pricing by monopolists. Furthermore, a strong aversion to unfair pricing may improve social welfare compared with the situation in which consumers do not perceive price discrimination as unfair. Conversely, if the disutility from price inequality is not sufficiently large, social welfare decreases.

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 Price Discrimination Under Uncertainty of Consumers Fairness Concerns written by Tomohisa Okada and published by . This book was released on 2018 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores the effects of the unpredictability of consumers' fairness concerns on monopolistic third-degree price discrimination. We develop a simple repeated game framework to consider the monopolist's pricing strategy in the long run. In contrast to previous studies, we focus on an information disclosure mechanism derived from unpredictability of consumers' fairness concerns: the intensity of the resulting backlash is unknown until firms treat consumers unfairly. Although consumers' fairness concerns tend to lead to uniform pricing even in the absence of fairness unpredictability, this mechanism enhances this tendency and works to sustain uniform pricing in the long run.

Download or read book Price Discrimination and Fairness Concerns written by Florian Englmaier and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

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 Is All that Unequal Unfair On the Perceived Fairness of Price and Wage Disparities written by Nofar Duani and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a prominent Forbes magazine piece, Anderson (2019) asks whether ethics really matter to today's consumers. The answer to this question appears to be a resounding yes. “Unlike any other time in history, consumers are truly demanding more from the companies with which they do business. Today's shoppers are looking for ethical, eco-friendly brands that put people and the planet ahead of profits.” One need not look far for prominent examples of consumers' moral outrage over injustice and unfairness in the marketplace. Critiques of discrimination and unequal economic outcomes are abound, and often spread like wildfire in today's virtual spaces. Whether these changes reflect a fundamental shift in consumers' preferences or merely platformed and elevated by social media, it is undoubtable that companies face increasing pressures to behave more ethically. One survey of UK consumers found that more than half of those surveyed wanted companies to take a stand on issues they care about such as sustainability, transparency and fair employment practices (Accenture Strategy 2018). Companies that do not align with customer beliefs pay the price. Consumers avoid sellers they perceive as unfair and are more likely to demand refunds, complain, and spread negative word of mouth upon encountering unfair tactics (Fehr and Schmidt 1999; Xia and Monroe 2017; Xia, Monroe, and Cox 2004). In this research I study consumers' fairness concerns in two domains. In essay 1, I examine the perceived fairness of demographic price discrimination. In this joint work with Alixandra Barasch and Vicki Morwitz we study the demographic price discrimination in the digital age. We find that consumers' fairness perceptions depend on who consumers believe is responsible for implementing it--a person or an algorithm. Contrary to the substantial literature emphasizing consumers' algorithm aversion, we show that consumers view demographic-based price discrimination as more fair when prices are determined by algorithms (versus humans). We also offer evidence for a mechanism we propose: when demographic price discrimination is performed by algorithms, people are less likely to attribute the discriminatory action to the agent's moral agency. In essay 2, I explore consumers' perceptions of the fairness of the gender pay gap. In this work, conducted with Alixandra Barasch and Amit Bhattacharjee, we examine how consumers evaluate unequal economic outcomes arising from explicitly unbiased institutional processes. Three studies find that men perceive gender pay gaps as equally fair regardless of direction, while women perceive the exact same outcomes as more indicative of institutional unfairness when they are disadvantaged than when men are disadvantaged. Our findings highlight one reason for the contentiousness of discussions on outcome inequality: evidence for institutional discrimination and perceptions of what constitutes unbiased treatment may be in the eye of the beholder.

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 Third Degree Price Discrimination and Consumer Surplus written by Simon Cowan and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

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 The Antitrust Paradox written by Robert Bork and published by . This book was released on 2021-02-22 with total page 536 pages. Available in PDF, EPUB and Kindle. Book excerpt: The most important book on antitrust ever written. It shows how antitrust suits adversely affect the consumer by encouraging a costly form of protection for inefficient and uncompetitive small businesses.

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 Big Data written by Executive Office of the President and published by CreateSpace. This book was released on 2014-10-29 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the first censuses were taken and crop yields recorded in ancient times, data collection and analysis have been essential to improving the functioning of society. Foundational work in calculus, probability theory, and statistics in the 17th and 18th centuries provided an array of new tools used by scientists to more precisely predict the movements of the sun and stars and determine population-wide rates of crime, marriage, and suicide. These tools often led to stunning advances. In the 1800s, Dr. John Snow used early modern data science to map cholera “clusters” in London. By tracing to a contaminated public well a disease that was widely thought to be caused by “miasmatic” air, Snow helped lay the foundation for the germ theory of disease.Gleaning insights from data to boost economic activity also took hold in American industry. Frederick Winslow Taylor's use of a stopwatch and a clipboard to analyze productivity at Midvale Steel Works in Pennsylvania increased output on the shop floor and fueled his belief that data science could revolutionize every aspect of life.2 In 1911, Taylor wrote The Principles of Scientific Management to answer President Theodore Roosevelt's call for increasing “national efficiency”: Today, data is more deeply woven into the fabric of our lives than ever before. We aspire to use data to solve problems, improve well-being, and generate economic prosperity. The collection, storage, and analysis of data is on an upward and seemingly unbounded trajectory, fueled by increases in processing power, the cratering costs of computation and storage, and the growing number of sensor technologies embedded in devices of all kinds. In 2011, some estimated the amount of information created and replicated would surpass 1.8 zettabytes. In 2013, estimates reached 4 zettabytes of data generated worldwide.

Download or read book The Economics of Welfare written by Arthur Cecil Pigou and published by . This book was released on 1924 with total page 820 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Pricing and Revenue Optimization written by Robert Phillips and published by Stanford University Press. This book was released on 2005-08-05 with total page 470 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is the first comprehensive introduction to the concepts, theories, and applications of pricing and revenue optimization. From the initial success of "yield management" in the commercial airline industry down to more recent successes of markdown management and dynamic pricing, the application of mathematical analysis to optimize pricing has become increasingly important across many different industries. But, since pricing and revenue optimization has involved the use of sophisticated mathematical techniques, the topic has remained largely inaccessible to students and the typical manager. With methods proven in the MBA courses taught by the author at Columbia and Stanford Business Schools, this book presents the basic concepts of pricing and revenue optimization in a form accessible to MBA students, MS students, and advanced undergraduates. In addition, managers will find the practical approach to the issue of pricing and revenue optimization invaluable. Solutions to the end-of-chapter exercises are available to instructors who are using this book in their courses. For access to the solutions manual, please contact [email protected].

Download or read book Theories of Choice written by Stefan Grundmann and published by Oxford University Press. This book was released on 2021-01-14 with total page 353 pages. Available in PDF, EPUB and Kindle. Book excerpt: Choice is a key concept of our time. It is a foundational mechanism for every legal order in societies that are, politically, constituted as democracies and, economically, built on the market mechanism. Thus, choice can be understood as an atomic structure that grounds core societal processes. In recent years, however, the debate over the right way to theorize choice - for example, as a rational or a behavioral type of decision making - has intensified. This collection provides an in-depth discussion of the promises and perils of specific types of theories of choice. It shows how the selection of a specific theory of choice can make a difference for concrete legal questions, in particular in the regulation of the digital economy or in choosing between market, firm, or network. In its first part, the volume provides an accessible overview of the current debates about rational versus behavioral approaches to theories of choice. The remainder of the book structures the vast landscape of theories of choice along with three main types: individual, collective, and organizational decision making. As theories of choice proliferate and become ever more sophisticated, however, the process of choosing an adequate theory of choice becomes increasingly intricate. This volume addresses this selection problem for the various legal arenas in which individual, organizational, and collective decisions matter. By drawing on economic, technological, political, and legal points of view, the volume shows which theories of choice are at the disposal of the legally relevant decision-maker, and how they can be operationalized for the solution of concrete legal problems. The editors acknowledge the kind support of the Fritz Thyssen Foundation for an exploratory conference on the subject of the book.

Download or read book Data Brokers written by Federal Trade Commission and published by Createspace Independent Pub. This book was released on 2015-03-11 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this report, the Federal Trade Commission discusses the results of an in-depth study of nine data brokers. These data brokers collect personal information about consumers from a wide range of sources and provide it for a variety of purposes, including verifying an individual's identity, marketing products, and detecting fraud. Because these companies generally never interact with consumers, consumers are often unaware of their existence, much less the variety of practices in which they engage. By reporting on the data collection and use practices of these nine data brokers, which represent a cross-section of the industry, this report attempts to shed light on the data broker industry and its practices. For decades, policymakers have expressed concerns about the lack of transparency of companies that buy and sell consumer data without direct consumer interaction. Indeed, the lack of transparency among companies providing consumer data for credit and other eligibility determinations led to the adoption of the Fair Credit Reporting Act ("FCRA"), a statute the Commission has enforced since its enactment in 1970. The FCRA covers the provision of consumer data by consumer reporting agencies where it is used or expected to be used for decisions about credit, employment, insurance, housing, and similar eligibility determinations; it generally does not cover the sale of consumer data for marketing and other purposes. While the Commission has vigorously enforced the FCRA, 1 since the late 1990s it has also been active in examining the practices of data brokers that fall outside the FCRA.

Download or read book Model Rules of Professional Conduct written by American Bar Association. House of Delegates and published by American Bar Association. This book was released on 2007 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Model Rules of Professional Conduct provides an up-to-date resource for information on legal ethics. Federal, state and local courts in all jurisdictions look to the Rules for guidance in solving lawyer malpractice cases, disciplinary actions, disqualification issues, sanctions questions and much more. In this volume, black-letter Rules of Professional Conduct are followed by numbered Comments that explain each Rule's purpose and provide suggestions for its practical application. The Rules will help you identify proper conduct in a variety of given situations, review those instances where discretionary action is possible, and define the nature of the relationship between you and your clients, colleagues and the courts.