中微课件范里安版MicroCh25章节幻灯片.pptVIP

Two-Part Tariffs A profit-maximizing two-part tariff gives an efficient market outcome in which the monopolist obtains as profit the total of all gains-to-trade. Summary The key to solving a monopolist problem is to be able to write down his/her profit function. Chapter Twenty-Five Monopoly Behavior What do we do in this chapter? We have studied the situation when a monopolist charges a uniform price for all. But often time, a monopolist can charge different prices to different people? E.g. student discount. Why and how? Types of Price Discrimination 1st-degree: Each output unit is sold at a different price. Prices may differ across buyers. 2nd-degree: The price paid by a buyer can vary with the quantity demanded by the buyer. But all customers face the same price schedule. E.g. bulk-buying discounts. Types of Price Discrimination 3rd-degree: Price paid by buyers in a given group is the same for all units purchased. But price may differ across buyer groups.E.g., senior citizen and student discounts vs. no discounts for middle-aged persons. First-degree Price Discrimination p(y) y $/output unit MC(y) Sell the th unit for $ First-degree Price Discrimination p(y) y $/output unit MC(y) Sell the th unit for $ Later onsell the th unit for $ Finally sell the th unit for marginal cost, $ First-degree Price Discrimination p(y) y $/output unit MC(y) The monopolist gets the maximum possible gains from trade. PS First-degree price discriminationis Pareto-efficient. Third-degree Price Discrimination Price paid by buyers in a given group is the same for all units purchased. But price may differ across buyer groups. Third-degree Price Discrimination A monopolist manipulates market price by altering the quantity of product supplied to that market. So the question “What discriminatory prices will the monopolist set, one for each group?” is really the question “How many units of product