We compare the profit of optimal third-degree price discrimination policy against a uniform pricing policy. A offers same to all segments market. Our main result establishes that for broad class problems with concave functions (in space) and common support, is guaranteed achieve one half monopoly profits. This bound holds any number prices seller might use under discrimination. establish these ...

Pricing Under Time-Varying Valuations

This paper investigates an uncertain price discrimination problem in labor market, in which the employee’s capability is his/her private information and characterized as an uncertain variable. To maximize the employer’s welfare, an uncertain price discrimination model in labor market is established. Moreover, a crisp equivalent form of the model is given, and the analytic solution is therefore ...