Second-degree Price Discrimination with a Continuum of Types

The Impact of CSR and Semi-TDPD on Price-Based Revenue Sharing Contract

We develop a new coordination contract of manufacturer-retailer in a distribution system. A revenue sharing contract based on retail price is modelled, which is more practical to handle channel conflict. We also integrate two concepts of CSR (Corporate Sociality Responsible) and Semi-TDPD (Semi Third Degree Price Discrimination) into our model. Semi-TDPD strategy makes it possible to exploit th...

Option Contracts and Capacity Management—Enabling Price Discrimination under Demand Uncertainty

W explore using an option contract as a price discrimination tool under demand uncertainty. In our capacity game model, a monopolistic supplier has to build capacity before observing the uncertain demand. The demand is generated by two potential customers, who privately know their own types. The types could be either high or low, differing in willingness to pay for each unit of demand. To discr...

Input third-degree price discrimination by congestible facilities

This paper studies third-degree price discrimination by transport facilities, such as airports and seaports, which sell access to the infrastructure as a necessary input for downstream production. These facilities are prone to congestion –which makes downstream markets interrelated– and their ownership structure is diverse, varying from public (domestic welfare maximizing) to private (profit ma...

Second degree price discrimination

Consumer heterogeneity, incomplete information and pricing in a duopoly with switching costs

It is well known that switching costs may facilitate monopoly pricing in a market with price competition between two suppliers of a homogenous good, provided the switching cost is above some critical level. With heterogeneous consumers and incomplete information about individual consumers’ types, monopoly pricing entails second-degree price discrimination with inefficient contracts for low dema...