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Price Discrimination and Three Part Tariffs in a Duopoly

Sissel Jensen

Working Papers from Norwegian School of Economics and Business Administration-

Abstract: The paper studies how second degree price discrimination can be implemented in a duopoly with differentiated products. Two firms serve consumers having heterogeneous willingness to pay for the good, willingness to pay being private knowledge. Consumers choose from a menu of tariffs and are subsequently billed according to the chosen tariff. Although product differentiation enables the firms to implement price discrimination, it is shown that competition have important effect on the tariff structure.

Keywords: PRICES; ASYMETRIC INFORMATION; OLIGOPOLIES (search for similar items in EconPapers)
JEL-codes: D82 L13 L96 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2000
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Handle: RePEc:fth:norgee:3/2000