单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,Chapter 4 Price discrimination,ECNU Oriental Real Estate College,Chapter 4 Price discriminat,1,4.1 Definition,A prevalent marketing skill and economic phenomena.,preferential price or quantity discount.eg.,Sometimes people will think that if firms charge different price on different consumers for the same goods,it means price discrimination.But this understanding is incomplete.,In much case,discrete price maybe only reflect traffic cost and sales cost fee.And in certain case,universal price means discrimination on the contrary(fixed fee in bus eg.).,4.1 Definition A prevalent mar,2,Price discrimination means one firm sales the identical goods to different consumers with different net price.(Philips,1983),Net price,subtract product difference from goods price.,If price differentiation just reflects the cost difference of supplying to different consumers,we deem price discrimination doesnt exist.,Ratio test,Harry potterin painly packed edition vs.deluxe edition,eg.,Price discrimination means one,3,At the same time,we cant say providing different quality goods to different consumers means no discrimination.,Reason of providing service in different quality(such as classed cabin in aircrafts and trains)partly is to get consumers surplus by segmenting consumers into different groups,The concept of“identical”goods：,BMW in USA is the same to in German?,General equilibrium theorist may point out with some excuse，goods delivered in different time,different location and different state or different quality is different goods,so scope of pure price discrimination is very limited.,英文版产业经济学教程第4章价格歧视ppt课件,4,Conditions of price discrimination,1、firms must has market power.,We often confine it in monopoly or oligopoly market,only when firms can price higher than marginal cost,can they charge different price on different consumers.,Locay and Rodriguez,1992：competitive firms is possible to practice price discrimination,if consumers purchase in group unit.,2、the ability of effective market segmentation.,3、ensure of no arbitrage.,Conditions of price discrimina,5,Market segmentation,Can we find a right way to conduct market segmentation（the result must be related to price elasticity and WTP(willing to pay),status,gender,age,Location,time,use,Purchasing amount,Market segmentation Can we,6,Kinds of arbitrages,Possibility of price discrimination is related with possibility of arbitrage.,One kind of arbitrage is related with transferability of goods.,If transaction cost is low,price discrimination will encounter arbitrage,namely low-price consumers will buy for reselling to high-price consumers.,Transaction cost provides one clue to feasibility of price discrimination.,Absolute arbitrage or no arbitrage is only two extreme case.Generally,some limited arbitrage will occurs,it depends on relative cost and income.,Kinds of arbitrages Possibil,7,The other kind of arbitrage is related with transferability of different consume packages or bundles provided to consumers.,That not means physical transfer of goods among consumers.That means firms try to make every buyer really select consume package designed for him,not for others.,Incentive compatibility and self-selection.,The other kind of arbitrage is,8,Influence of arbitrage,Influence of two kinds of arbitrage is different.,Transferability,of goods is inclined to prevent discrimination.,Transferability,of demand may cause firms increase discrimination.,Influence of arbitrageInfluenc,9,Three kinds of price discrimination,Perfect price discrimination suppliers get all consumer surplus in condition of holding perfect information of willing payment.,Second-degree price discriminationsuppliers extract consumer surplus incompletely using self-selection when information of individual preference is incomplete.,Third-degree price discrimination Market segmentation using direct information about demand such as age,profession and location etc.and set different price for each group.,Three kinds of price discrimin,10,4.2 Perfect price discrimination,simplest case：single consumer(or some identical consumers)has one unit of demand.,Monopoly make price equal to reserve price,getting all consumer surplus.,A classical example：a doctor is a little village similar with everybody in there and their economic information.He estimates how much everyone is willing to pay for and then charge for that amount.,Another case：airline company pay for each aircraft in different price.,4.2 Perfect price discriminat,11,(2)Complex case,assumption：n consumers hold the same demand curve,and monopoly know about it.,q=D(p)/n,so D(p)=nq,T gross of consumers payment,Two pricing projects：linear pricing and two part tariff,Linear pricing：T=pq,Two part tariff：T=A+pq,(2)Complex caseassumption：n c,12,Profit maximization,In linear pricing,monopoly price：p=,Two part tariff：set as net consumer surplus in competitive price p=,set“license fee”,A=,so pricing project as below,T(q)=,Profit compare：