TABLE OF CONTENTS INTRODUCTION: LAWS TARGETING PRICE DISCRIMINATION .............. 1237 I. ECONOMIC CONCEPTIONS OF PRICE DISCRIMINATION: A BRIEF REVIEW ..................................................................... 1239 A. Price Discrimination, Defined .......................................... 1239 B. Arbitrage, Market Power, and Price Discrimination ........ 1243 C. Price Discriminatio...

In broad terms, one can say that price discrimination exists when two “similar” products which have the same marginal cost to produce are sold by a firm at different prices.1 This practice is often highly controversial in terms of its impact on both consumers and rivals. This chapter aims to explain some of the main economic motives for price discrimination, and to outline when this practice wi...

journey, same date, same time, same comfort class) is sold at different prices1. ∗We gratefully acknowledge travel funding from the CNRS and NSF under grants INT9815703 and GA10273, and research funding under grant SES 0452864 . We thank Anita Anderson, Alain Béraud, Catherine de Fontenay, Robin Lindsey, André de Palma, Emile Quinet, and Sarah Tulman for their comments and suggestions. We would...

The Web site of computer manufacturer Dell asks prospective buyers to declare whether they are a home user, small business, large business or government entity. Two years ago, the price of a 512MBmemory module, part number A0193405, depended on which business segment one declared. At that time, Dell quoted $289.99 for a large business, $266.21 for a government agency, $275.49 for a home, and $2...

We analyze the profitability of third degree price discrimination under consideration of consumers’ fairness concerns within an experiment and explain the results within a theoretical framework. We find that with an increase in the price differential negative reciprocal reactions by disadvantaged consumers become stronger compared to positive reciprocal reactions by advantaged consumers. Conseq...

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...

We study price discrimination where different prices are offered as a bundle with different levels of information about a product. The seller’s price discrimination induces high valuation buyers to purchase a good without information and low valuation buyers to purchase with information. Our analysis highlights several interesting results about price discrimination: (i) the seller’s choice of i...