Sharon Kartika

Discrimination

3rd degree price discrimination

Separate markets like, urban-rural, domestic-foreign, prime time - off time.

Pi>Pj if ei<ej P_i>P_j \;\; \text{if}\;\; e_i<e_j

2nd degree price discimination

Monopolist chooses a price schedule that provides incentive for buyers to separate themselves depending on their demand. For example, amusement parks charge entry fee, and then separate price for each ride.

Sharon Kartika. Last modified: January 04, 2024.