Incomplete third-degree price discrimination, and market partition problem

We introduce in this paper the "incomplete" third-degree price discrimination, which is the situation where a monopolist must charge at most k different prices while the total market is composed of n markets, with n>k. We thus study the optimal partition problem of the n markets in k groups. As a byproduct, when k=2, we are able to reconsider the so-called (Robinsonian) weak-strong partition.

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Year of publication:	2009
Authors:	Braouezec, Yann
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 29.2009, 4, p. 2908-2917
Publisher:	AccessEcon
Subject:	Price discrimination \| monopoly \| decentralized decision process \| optimal partition problem \| profit maximization

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	L0 - Industrial Organization. General ; L1 - Market Structure, Firm Strategy, and Market Performance
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008562974