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Optimal price discrimination

Author

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  • Hartwick, John M.

Abstract

Since the raising of revenue to finance declining cost industries which price output according to marginal cost by price discrimination has been proposed (Lipsey and Steiner (1972) and Samuelson (1972)), we direct attention to the general problem of a central authority optimally raising revenue by price discrimination. We derive conditions which comprise the modern versions of the Ramsey Tax Rule as special cases.
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Suggested Citation

  • Hartwick, John M., 1978. "Optimal price discrimination," Journal of Public Economics, Elsevier, vol. 9(1), pages 83-89, February.
    • Handle: RePEc:eee:pubeco:v:9:y:1978:i:1:p:83-89
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    Cited by:

    1. Braouezec, Yann, 2016. "On the welfare effects of regulating the number of discriminatory prices," Research in Economics, Elsevier, vol. 70(4), pages 588-607.
    2. Braouezec, Yann, 2012. "Customer-class pricing, parallel trade and the optimal number of market segments," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 605-614.
    3. Yann Braouezec, 2013. "The Welfare Effects of Regulating the Number of Market Segments," Working Papers 2013-ECO-11, IESEG School of Management.

    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables

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