TY - JOUR
T1 - Second-degree price discrimination
T2 - A graphical and mathematical approach
AU - Gotlibovski, Chemi
AU - Kahana, Nava
PY - 2009/1/1
Y1 - 2009/1/1
N2 - The authors use a relatively simple diagram accompanied by mathematical analysis to compare two pricing strategies: price-quantity packages and a two-part tariff. This is done both from the monopolist's point of view and from the welfare point of view. The authors show that in the case of two consumer types, the price-quantity packages strategy dominates two-part tariff pricing from the monopolist's point of view. However, social welfare may be higher under two-part tariff pricing.
AB - The authors use a relatively simple diagram accompanied by mathematical analysis to compare two pricing strategies: price-quantity packages and a two-part tariff. This is done both from the monopolist's point of view and from the welfare point of view. The authors show that in the case of two consumer types, the price-quantity packages strategy dominates two-part tariff pricing from the monopolist's point of view. However, social welfare may be higher under two-part tariff pricing.
KW - Bundling
KW - Two-part tariffs
KW - Welfare
UR - http://www.scopus.com/inward/record.url?scp=67649563228&partnerID=8YFLogxK
U2 - 10.3200/jece.40.1.068-079
DO - 10.3200/jece.40.1.068-079
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AN - SCOPUS:67649563228
SN - 0022-0485
VL - 40
SP - 68
EP - 79
JO - Journal of Economic Education
JF - Journal of Economic Education
IS - 1
ER -