Price Discrimination

08 Jun 2020

APerfect DiscriminationModel

As conditions follwing:

1. Monopolists knows exactly each costumer’s williness to pay
2. Mnopolists can charge each customer a different price

   Disadvantages

3. arbitrage, people buy the goods with low price and sell it at market where price of it is higher.
4. deadloss if sellers can not divide people into different groups exactly.

Example

1. movie tickets
2. airline prices
3. publishing
4. financial aid: fee of university