A Taxonomy of Monopolistic Pricing

Hugh Sibly and Ann Marsden

No 7339, Working Papers from University of Tasmania, Tasmanian School of Business and Economics

Abstract: Textbooks present the three ‘degrees’ of price discrimination as a sequence of independent pricing methods. These textbook treatments consequently provide inadequate insight as to when a firm might adopt a particular pricing strategy. The paper describes an informationbased taxonomy 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 the information on consumer demand available to it. The paper proposes a method for ranking profit and efficiency levels under different price discrimination strategies. The information based taxonomy is compared to the traditional textbook approach.

Keywords: Monopoly; non-linear pricing; price discrimination (search for similar items in EconPapers)
JEL-codes: D4 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2008-09-01, Revised 2008-09-01
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Published by the University of Tasmania. Discussion paper 2008-04.

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