Sales Policies and Price Discrimination under the Clayton Act

THE LAW GOVERNING SALES OF GooDs AT COMMON LAW AND UNDER THE UNIFORM SALES ACT

Intertemporal Price Discrimination: Structure and Computation of Optimal Policies

W study a firm’s optimal pricing policy under commitment. The firm’s objective is to maximize its longterm average revenue given a steady arrival of strategic customers. In particular, customers arrive over time, are strategic in timing their purchases, and are heterogeneous along two dimensions: their valuation for the firm’s product and their willingness to wait before purchasing or leaving. ...

Limit pricing under third-degree price discrimination

We consider an incumbent who operates in two independent markets and has private information about his production cost. In one of the markets, there is a potential entrant o¤ering a di¤erentiated product. The most reasonable perfect bayesian equilibrium is either the least cost separating equilibrium or the pooling equilibrium where both types of incumbents set the low cost monopoly prices. The...

Price Discrimination and Fairness Concerns Price Discrimination and Fairness Concerns

We analyze the profitability of third degree price discrimination under consideration of consumers’ fairness concerns within an experiment and explain the results within a theoretical framework. We find that with an increase in the price differential negative reciprocal reactions by disadvantaged consumers become stronger compared to positive reciprocal reactions by advantaged consumers. Conseq...

Subtle price discrimination and surplus extraction under uncertainty

This paper provides a solution to Proebsting’s Paradox, an argument that appears to show that the investment rule known as the Kelly criterion can lead a decision maker to invest a higher fraction of his wealth the more unfavorable the odds he faces are and, as a consequence, risk an arbitrarily high proportion of hiswealth on the outcome of a single event. The paper shows that a large class of...