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Evgeny Zhelobodko1,2, Sergey Kokovin2, Maria Sablina3The Comparative Advantages of Two Price Discrimination Schemes for Two Types of Consumers with Non-ordered Demands
2012.
Vol. 16.
No. 2.
P. 243–263
[issue contents]
A monopolist can price-discriminate between two consumer groups with linear de mands that can cross (violate the Spence-Mirrlees condition). We derive complete parametric taxon omy of the outcomes. Switching from simple uniform pricing to two-part tariff or package pricing «generally» decreases the monopolistic deadweight loss. Switching from two-part tariff to packages also «generally» decreases the loss. However, we specify a small parameters' region where both these conclusions fail. Additionally, we find parameters yielding discrimination bene fits to «big» or to «small» consumers. Thereby, we show the demand-specific and pricing- scheme specific reasons for/against public restrictions on price discrimination.
Citation:
Zhelobodko E., Kokovin S., Sablina M. (2012) Sravnitel'nye preimushchestva dvukh skhem tsenovoy diskriminatsii pri dvukh gruppakh potrebiteley bez usloviya Spensa – Mirrlisa [The Comparative Advantages of Two Price Discrimination Schemes for Two Types of Consumers with Non-ordered Demands]. Ekonomicheskiy zhurnal VShE, vol. 16, no 2, pp. 243-263 (in Russian)
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