We consider a model in which a profit-maximizing organization called the monopolist faces N _ 2 different (micro) market segments while the number k of market segments is chosen the regulator, where k is an integer between 1 and N. Unless k = 1 or k = N, the monopolist's profit maximization is a...

We consider the optimal market segmentation problem of a monopolist that faces a continuum of customers when it is costly to prevent resale (or parallel trade) among groups. In our framework, the monopolist chooses the number k≥1 of market segments, but also their design and the discriminatory...