Cover Image
QR Code

Differential pricing when costs differ: a welfare analysis.

This article analyzes the welfare effects of monopoly differential pricing in the important, but largely neglected, case where costs of service differ across consumer groups. Cost-based differential pricing is shown to increase total welfare and consumer welfare relative to uniform pricing for broad...

Full description

Published in:RAND Journal of Economics (Wiley-Blackwell) Vol. 46; no. 2; pp. 442 - 461
Main Authors: Chen, Yongmin, Schwartz, Marius
Format: Article
Published: Wiley-Blackwell Summer2015
Subjects:
Consumer behavior
Economic demand
Resource allocation
Pricing
Price discrimination
Online Access:View this record in EBSCOhost