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An Integrated Approach to Teaching Price Discrimination


Marsden, A and Sibly, H, An Integrated Approach to Teaching Price Discrimination, International Review of Economics Education, 10, (2) pp. 75-90. ISSN 1477-3880 (2011) [Refereed Article]

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Copyright 2011 University of Bristol

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DOI: doi:10.1016/S1477-3880(15)30027-X


Textbooks present the three 'degrees' of price discrimination as a sequence of independent pricing methods and consequently provide inadequate insight as to when a firm might adopt a particular pricing strategy. The paper describes a taxonomy of the various mechanisms of price discrimination, which can be used to teach monopolistic price discrimination in an integrated way. The pricing strategy adopted by firms is based on (i) the information on consumer demand available to it and (ii) whether the firm has the ability to conduct non-linear pricing. The paper proposes a method for ranking profit and efficiency levels under different price discrimination strategies. The proposed taxonomy is compared to the exisitng textbook approach.

Item Details

Item Type:Refereed Article
Research Division:Economics
Research Group:Applied economics
Research Field:Applied economics not elsewhere classified
Objective Division:Economic Framework
Objective Group:Microeconomics
Objective Field:Industrial organisations
UTAS Author:Marsden, A (Ms Ann Marsden)
UTAS Author:Sibly, H (Dr Hugh Sibly)
ID Code:77130
Year Published:2011
Deposited By:Economics and Finance
Deposited On:2012-03-19
Last Modified:2017-11-23

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