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Journal of Industrial Organization Education

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Third-Degree Price Discrimination

Qihong Liu
  • University of Oklahoma
/ Konstantinos Serfes
  • Drexel University
Published Online: 2011-03-21 | DOI: https://doi.org/10.2202/1935-5041.1030

This lecture deals with third-degree price discrimination in both monopolistic and oligopolistic markets. The classical monopoly paradigm serves as a benchmark. Next, we move to an oligopoly setting, first with best-response symmetry, then with best-response asymmetry. We end with behavior-based price discrimination. This lecture targets advanced undergraduate and graduate students.

Keywords: third-degree price discrimination; best-response asymmetry; price discrimination by purchase history

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Published Online: 2011-03-21

Citation Information: Journal of Industrial Organization Education, ISSN (Online) 1935-5041, DOI: https://doi.org/10.2202/1935-5041.1030. Export Citation

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