Review of Economic Studies Vol. 49 No. 3 1982
Price Discrimination Based On Imperfect Information: Necessary and Sufficient Conditions
Abstract
Usually, the information a buyer requires in order to obtain the lowest price must be produced at a cost depending on the efficiency with which the buyers gather information. Thus, a suitable price dispersion enables a monopolist to split up the market to permit a more profitable price discrimination. In this paper, necessary and sufficient conditions for the existence of a non-trivial profit maximizing price dispersion are considered. Furthermore, the relationship between statistical properties of the set of consumers' characteristics and this existence problem are studied.
- DOI
- 10.2307/2297363
- Volume
- 49
- Issue
- 3
- Pages
- 391
- Sources
- openalex crossref