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Optimal Price Discrimination

Author

Listed:
  • John Hartwick

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.

Suggested Citation

  • John Hartwick, 1976. "Optimal Price Discrimination," Working Paper 237, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:237
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    Cited by:

    1. 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.
    2. Braouezec, Yann, 2016. "On the welfare effects of regulating the number of discriminatory prices," Research in Economics, Elsevier, vol. 70(4), pages 588-607.
    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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