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An Essay on Price Discrimination

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  • Paul Milgrom.

Abstract

The modern theory of price discrimination began with the work of Pigou (1920). Joan Robinson devoted two chapters of her book The Economics of Imperfect Competition (1969) to the problem of (‘third degree’) price discrimination. Her account examines the conditions that make price discrimination possible, presents a graphical analysis of the discriminating monopolist’s pricing decision which has become the standard textbook treatment, and ends with an inquiry into the consequences of price discrimination for both allocative efficiency and distributional equity. Although Pigou’s and Robinson’s contributions have proved of lasting value, the theory of price discrimination has by no means remained unaltered.1
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Suggested Citation

  • Paul Milgrom., 1987. "An Essay on Price Discrimination," Economics Working Papers 8732, University of California at Berkeley.
    • Handle: RePEc:ucb:calbwp:8732
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    Cited by:

    1. Angelo Ranaldo & Dr. Enzo Rossi, 2016. "Uniform-price auctions for Swiss government bonds: Origin and evolution," Economic Studies 2016-10, Swiss National Bank.
    2. Arnaud Diemer, 2001. "Discrimination par les prix et concurrence imparfaite, les apports de Joan Robinson," Innovations, De Boeck Université, vol. 14(2), pages 55-65.

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