scholarly journals Intertemporal Price Discrimination in Storable Goods Markets

2011 ◽  
Author(s):  
Igal Hendel ◽  
Aviv Nevo
Keyword(s):  
Price Discrimination ◽  
Intertemporal Price Discrimination

scholarly journals PERSPEKTIF ILMU EKONOMI DAN UNDANG-UNDANG NOMOR 5 TAHUN 1999 TENTANG LARANGAN PRAKTIK MONOPOLI DAN PERSAINGAN USAHA TIDAK SEHAT TERHADAP DISKRIMINASI HARGA

2018 ◽  
Author(s):  
Irwan Sugiarto
Keyword(s):  
Price Discrimination ◽  
Peak Load ◽  
Cost Price ◽  
Price Strategy ◽  
Price Determination ◽  
Intertemporal Price Discrimination ◽  
Price Strategies ◽  
Second Degree

Unfair business competition can cause and trigger monopoly practice where markets arecontrolled and dominated by business doers. Besides, another impact of monopoly practiceis that; the business doers tend to sell expensive products without good quality. Monopolybusiness doers often apply price strategy where the entrepeneurs at normal competitivemarkets are not possible to do that. One of price strategies is price discrimination. Pricediscrimination refers to different price determination at a product at different time to everydifferent customer, or different market, but it is not based on different cost. Price discriminationcan be distinguished into three kinds, namely first degree price discrimination, second degreeprice discrimination, and third degree price discrimination. In addition to that, there is avariant in second degree price discrimination and third degree price discrimination, namelytwo part tariff, intertemporal price discrimination, and also peak load pricing.In Act No. 5 year 1999, discrimination related to prices is regulated in two groups ofrules and articles, that is to say price discrimination which is aproved under agreement, anddiscrimination which is performed by unilateral agreement or without agreement.

A Note on the Multidimensional Monopolist Problem and Intertemporal Price Discrimination

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
Mariano G Runco
Keyword(s):  
Price Discrimination ◽  
Price Strategy ◽  
Incentive Compatible ◽  
Step Functions ◽  
Intertemporal Price Discrimination ◽  
Ex Ante ◽  
Posted Prices ◽  
Price Discriminate ◽  
Heterogeneous Consumers ◽  
Over Time

This note analyzes a model of a monopolist selling multiple goods to a continuum of heterogeneous consumers. The implementation of Direct Revelation Mechanisms is analyzed in that setting, finding that it is possible for the monopolist to implement all Stochastic Incentive Compatible Mechanisms by committing to post a decreasing sequence of prices. The posted prices depend on time and have the desirable property of being step functions. When the optimal mechanisms are stochastic, it is optimal for the monopolist to price discriminate over time, contrary to the conventional wisdom that a single-good monopolist committed to an ex-ante price strategy will not price discriminate.

Upgrading, Degrading, and Intertemporal Price Discrimination

2003 ◽  
Vol 3 (1) ◽  
Author(s):  
Gea M Lee
Keyword(s):  
Price Discrimination ◽  
Durable Good ◽  
High Quality ◽  
Intertemporal Price Discrimination ◽  
Monopoly Pricing ◽  
Second Period ◽  
Period Model

The paper studies monopoly pricing of a vertically differentiated durable good in a two-period model. It provides an explanation for seemingly unusual practice of a firm selling a "degraded good," arguing that the presence of Coasian dynamics may lead to the sale of the degraded good that is not less costly to produce than a high-quality good. The main finding is that when the firm can identify previous customers only if they voluntarily reveal their past purchases, it sells the degraded good along with the high-quality good in the first period. When the firm sells an upgrade of the degraded good, the price of the high-quality good cannot be "too low" in the second period, since otherwise the upgrading customers would pretend to be new customers. Thus the firm can enhance first-period sales while mitigating consumers' incentive to wait until the next period.

scholarly journals Intertemporal Price Discrimination in Storable Goods Markets

2013 ◽  
Vol 103 (7) ◽  
pp. 2722-2751 ◽  
Author(s):  
Igal Hendel ◽  
Aviv Nevo
Keyword(s):  
Simple Model ◽  
Price Discrimination ◽  
Consumer Welfare ◽  
Optimal Pricing ◽  
Intertemporal Price Discrimination ◽  
Level Data ◽  
Future Consumption ◽  
The Impact ◽  
Total Welfare

We study intertemporal price discrimination when consumers can store for future consumption needs. We offer a simple model of demand dynamics, which we estimate using market-level data. Optimal pricing involves temporary price reductions that enable sellers to discriminate between price sensitive consumers, who stockpile for future consumption, and less price-sensitive consumers, who do not stockpile. We empirically quantify the impact of intertemporal price discrimination on profits and welfare. We find that sales (i) capture 25–30 percent of the gap between non-discriminatory profits and (unattainable) third-degree price discrimination profits, (ii) increase total welfare, and (iii) have a modest impact on consumer welfare. (JEL D11, D12, L11, L12, L81)

Sign in / Sign up

Export Citation Format

Share Document