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The Economics of Price Discrimination

Edited by George Norman, Cummings Family Chair of Entrepreneurship and Business Economics, Tufts University, US
This volume brings together the most significant articles which have appeared over the past three decades analyzing the application and effects of price discrimination.
Extent: 608 pp
Hardback Price: £179.00 Online: £161.10
Publication Date: 1999
ISBN: 978 1 84064 233 9
Availability: In Stock

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  • Economics and Finance
  • Behavioural and Experimental Economics
  • Industrial Economics
This volume brings together the most significant articles which have appeared over the past three decades analyzing the application and effects of price discrimination.

Discrimination is a pervasive marketing practice that survives despite the attempts of regulators to limit or eliminate its use; it is widespread also in oligopolistic and imperfectly competitive markets. It is a practice used by firms in pricing their products over product dimensions such as space, time and quality, and it affects the ability of firms to compete in other firms’ markets or to protect their own. This collection of articles by leading authors in the field highlights what we know of the motivations for and the welfare implications of price discrimination. It also presents a blueprint for further work in this important area.
Contributors include: E. Maskin, R.P. McAfee, S. Rosen, R. Schmalensee, M. Spence, J. Sutton, J.-F. Thisse, H. Varian, J. Vickers, R.Willig

Acknowledgements • Introduction

Part I: First-Degree Price Discrimination
1. Walter Y. Oi (1971), ‘ A Disneyland Dilemma: Two-Part Tariffs for a Mickey Mouse Monopoly’
2. Robert D. Willig (1978), Pareto-superior Nonlinear Outlay Schedules’
3. Richard Schmalensee (1981), ‘Monopolistic Two-Part Pricing Arrangements’
4. Thomas J. Hoerger (1993), ‘Two-Part Pricing for Experience Goods in the Presence of Adverse Selection’
Part II: Second-Degree Price Discrimination
5. Michael Spence (1977), ‘Nonlinear Prices and Welfare’
6. Eric Maskin and John Riley (1984), ‘Monopoly with Incomplete Information’
7. M. Barry Goldman, Hayne E. Leland and David S. Sibley (1984), ‘Optimal Nonuniform Prices’
8. Esther Gal-Or (1988), ‘Oligopolistic Nonlinear Tariffs’
Part III: Third-Degree Price Discrimination
9. Hal R. Varian (1985), ‘Price Discrimination and Social Welfare’
10. Marius Schwartz (1990), ‘Third-Degree Price Discrimination and Output: Generalizing a Welfare Result’
11. Stephen K. Layson (1994), ‘Market Opening under Third-Degree Price Discrimination’
12. Theon van Dijk (1995), ‘Innovation Incentives through Third-Degree Price Discrimination in a Model of Patent Breadth’
Part IV: Price Discrimination and Product Bundling
13. William James Adams and Janet L. Yellen (1976), ‘Commodity Bundling and the Burden of Monopoly’
14. Richard Schmalensee (1984), ‘Gaussian Demand and Commodity Bundling’
15. R. Preston McAfee, John McMillan and Michael D. Whinston (1989), ‘Multiproduct Monopoly, Commodity Bundling and Correlation of Values’
16. Brooks Pierce and Harold Winter (1996), ‘Pure vs. Mixed Commodity Bundling’
Part V: Applications and Extensions
A Spatial Price Discrimination
17. George Norman (1983), ‘Spatial Pricing with Differentiated Products’
18. Phillip J. Lederer and Arthur P. Hurter, Jr. (1986), ‘Competition of Firms: Discriminatory Pricing and Location’
19. Barnali Gupta, Amoz Kats and Debashis Pal (1994), ‘Upstream Monopoly, Downstream Competition and Spatial Price Discrimination’
B Intertemporal Price Discrimination
20. Nancy L. Stokey (1979), ‘Intertemporal Price Discrimination’
21. Louis Phlips (1980), ‘Intertemporal Price Discrimination and Sticky Prices’
22. Werner Güth, Peter Ockenfels and Klaus Ritzberger (1995), ‘On Durable Goods Monopolies: An Experimental Study of Intrapersonal Price Competition and Price Discrimination Over Time’
C Quality Differentiation
23. Michael Mussa and Sherwin Rosen (1978), ‘Monopoly and Product Quality’
24. Christos Constantatos and Stylianos Perrakis (1997), ‘Vertical Differentiation: Entry and Market Coverage with Multiproduct Firms’
25. Jean-Jaskold Gabszewicz, Avner Shaked, John Sutton and Jacques-François Thisse (1986), ‘Segmenting the Market: The Monopolist’s Optimal Product Mix’
26. John E. Kwoka, Jr. (1992), ‘Market Segmentation by Price-Quality Schedules: Some Evidence from Automobiles’
D Price Discrimination and Competition
27. George Norman (1981), ‘Spatial Competition and Spatial Price Discrimination’
28. W.B. MacLeod, G. Norman and J.-F. Thisse (1988), ‘Price Discrimination and Equilibrium in Monopolistic Competition’
29. Thomas J. Holmes (1989), ‘The Effects of Third-Degree Price Discrimination in Oligopoly’
30. Helmut Bester and Emmanuel Petrakis (1996), ‘Coupons and Oligopolistic Price Discrimination’
Part VI: The Legal Context and Deregulation
31. Norman J. Ireland (1992), ‘On the Welfare Effects of Regulating Price Discrimination’
32. Mark Armstrong and John Vickers (1993), ‘Price Discrimination, Competition and Regulation’
33. George Norman and Jacques-François Thisse (1996), ‘Product Variety and Welfare under Tough and Soft Pricing Regimes’
Name Index