Economics, Econometrics and Finance
4 years ago

Equal pricing for all: Third-degree price discrimination can be neutral.

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SSRN Electronic Journal
Linear Demands and Third-Degree Price Discrimination with Some Caveats
Yong Chao, Babu Nahata

Paper Summary

Third-degree price discrimination can be the same as uniform pricing when all submarkets have the same price intercepts. For general demands, if all submarkets' demands are proportional, they will all be served under uniform pricing, and prices will remain the same before and after price discrimination.

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