The degree of distortions under second-degree price discrimination

Yong Chao and Babu Nahata

Economics Letters, 2015, vol. 137, issue C, 208-213

Abstract: Under second-degree price discrimination, both types of consumers get efficient quantities when the net-of-cost valuation functions intersect at least once at some positive quantity and the point of intersection lies between the two peaks. Distortions can be upward or downward.

Keywords: Second-degree price discrimination; Degree of distortions; No exclusion; Upward distortion (search for similar items in EconPapers)
JEL-codes: D42 D61 L11 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:137:y:2015:i:c:p:208-213

DOI: 10.1016/j.econlet.2015.11.013

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