Optimal choice of the 2nd degree price discriminating monopolist
DOI:
https://doi.org/10.31501/rbee.v23i1.14235Abstract
Countless industries embrace the strategy of offering packages with units of a given good at different prices per unit, by analogy we can analyze the size of the package as the level of quality of the product or service. This quantity pricing policy is called second-degree price discrimination or nonlinear price discrimination. In this essay, the problem of optimal choice of the monopoly price-discriminating firm with two consumers is presented under general conditions and in a diagrammatic and analytical way for well-behaved linear demands.
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