EconPapers    
Economics at your fingertips  
 

Price Discrimination and Salient Thinking

Nana Adrian

Diskussionsschriften from Universitaet Bern, Departement Volkswirtschaft

Abstract: This paper generalizes the price discrimination framework of Mussa and Rosen (1978) by considering salience-driven consumer preferences in the sense of Bordalo et al. (2013b). Consumers with salience-driven preferences give a higher weight to attributes that vary more. This reduces the monopolist's propensity to treat different types of consumers differently. The paper's main result characterizes the conditions under which the monopolist induces consumers to focus on price rather than on quality.

Keywords: Salience; price discrimination; monopolist (search for similar items in EconPapers)
JEL-codes: D11 D42 D91 L11 (search for similar items in EconPapers)
Date: 2019-06
New Economics Papers: this item is included in nep-com, nep-ind and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.vwl.unibe.ch/wp-content/uploads/papers/dp/dp1906.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ube:dpvwib:dp1906

Access Statistics for this paper

More papers in Diskussionsschriften from Universitaet Bern, Departement Volkswirtschaft Contact information at EDIRC.
Bibliographic data for series maintained by Franz Koelliker ().

 
Page updated 2020-04-28
Handle: RePEc:ube:dpvwib:dp1906