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SECOND-DEGREE PRICE DISCRIMINATION - Monopoly with Incomplete Information

Pejicic, Sasa (2009)
Department of Economics
Abstract
This thesis is concerned with the problems that the monopolist is facing under the second-degree price discrimination where he does not possess the complete information about the preferences of the different consumer groups and as result he is not able to recognize different consumers prior to the consumption. The aim is to investigate what is, under those circumstances, the best possible strategy that the monopolist can apply in order to maximize his profit given some additional constraints regarding the behavior of the consumers. The monopolist is using the non-linear tariffs in such a way that allows him to capture as much of the consumer surplus as possible and turn it into the producer surplus. In addition, the answer is given to the... (More)
This thesis is concerned with the problems that the monopolist is facing under the second-degree price discrimination where he does not possess the complete information about the preferences of the different consumer groups and as result he is not able to recognize different consumers prior to the consumption. The aim is to investigate what is, under those circumstances, the best possible strategy that the monopolist can apply in order to maximize his profit given some additional constraints regarding the behavior of the consumers. The monopolist is using the non-linear tariffs in such a way that allows him to capture as much of the consumer surplus as possible and turn it into the producer surplus. In addition, the answer is given to the question in which case the monopolist is likely to offer the quantity discounts to the consumers. (Less)
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@misc{1644292,
  abstract     = {This thesis is concerned with the problems that the monopolist is facing under the second-degree price discrimination where he does not possess the complete information about the preferences of the different consumer groups and as result he is not able to recognize different consumers prior to the consumption. The aim is to investigate what is, under those circumstances, the best possible strategy that the monopolist can apply in order to maximize his profit given some additional constraints regarding the behavior of the consumers. The monopolist is using the non-linear tariffs in such a way that allows him to capture as much of the consumer surplus as possible and turn it into the producer surplus. In addition, the answer is given to the question in which case the monopolist is likely to offer the quantity discounts to the consumers.},
  author       = {Pejicic, Sasa},
  keyword      = {Monopolist,Price-discrimination,Consumer surplus,Non-linear tariffs,Assymetric information,Quantity discount,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {SECOND-DEGREE PRICE DISCRIMINATION - Monopoly with Incomplete Information},
  year         = {2009},
}