Second-Degree Price Discrimination on Two-Sided Markets

Second degree price discrimination

Interconnection Discrimination: A Two-Sided Markets Perspective

We first motivate a methodological approach to network economics research using tools from Industrial Organization (IO). We then demonstrate the utility of such models in light of an increasingly important problem of interconnection failures that includes network neutrality problem. In particular, we focus on a subset of the problem by focusing on direct interconnection failures when ISPs price...

Price Discrimination and Competition in Two-Sided Markets: Evidence from the Spanish Local TV Industry

In this paper, we empirically test the relation between price discrimination and product market competition in a two-sided market environment using a new data set of Spanish local TV stations that provides information on subscription and advertising prices per station for 1996, 1999 and 2002. Due to changes in regulation during this period affecting the degree of local market competition, we us...

Multi-dimensional Virtual Values and Second-degree Price Discrimination

We consider a multi-dimensional screening problem of selling a product with multiple quality levels and design virtual value functions to derive conditions that imply optimality of only selling highest quality. A challenge of designing virtual values for multi-dimensional agents is that a mechanism that pointwise optimizes virtual values resulting from a general application of integration by pa...

Second-degree Price Discrimination with a Continuum of Types

Assumptions • There is a continuum of types; specifically, a consumer’s type, θ, is an element of the real interval [θ0, θ1]. • Marginal cost is a constant, c. • Because marginal cost is a constant, there is no loss of generality in considering a single consumer whose type is drawn from the distribution F (·) : [θ0, θ1]. • Assume F (·) is differentiable. Let f(·) be the derivative (the density ...