This document provides an overview of different pricing strategies that firms can adopt, including various types of price discrimination. It discusses three main types of price discrimination: first degree, second degree, and third degree price discrimination. Second degree price discrimination, also known as multipart pricing, involves setting different prices for different blocks of units purchased, with lower prices applying to later blocks. Common examples mentioned are electricity pricing tiers and long-distance phone call pricing structures. The document aims to help understand how monopoly firms can segment markets and charge varying prices to maximize profits.
This document provides an overview of different pricing strategies that firms can adopt, including various types of price discrimination. It discusses three main types of price discrimination: first degree, second degree, and third degree price discrimination. Second degree price discrimination, also known as multipart pricing, involves setting different prices for different blocks of units purchased, with lower prices applying to later blocks. Common examples mentioned are electricity pricing tiers and long-distance phone call pricing structures. The document aims to help understand how monopoly firms can segment markets and charge varying prices to maximize profits.
This document provides an overview of different pricing strategies that firms can adopt, including various types of price discrimination. It discusses three main types of price discrimination: first degree, second degree, and third degree price discrimination. Second degree price discrimination, also known as multipart pricing, involves setting different prices for different blocks of units purchased, with lower prices applying to later blocks. Common examples mentioned are electricity pricing tiers and long-distance phone call pricing structures. The document aims to help understand how monopoly firms can segment markets and charge varying prices to maximize profits.