大学MBA中级微观讲义.pptxVIP

Chapter Twenty-FiveMonopoly Behavior垄断行为How Should a Monopoly Price?So far a monopoly has been thought of as a firm which has to sell its product at the same price to every customer. This is uniform pricing.Can price-discrimination （差别定价）earn a monopoly higher profits?StructureFirst-degree price discriminationSecond-degree price discriminationThird-degree price discriminationBundlingTwo-part tariffTypes of Price Discrimination1st-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 Discrimination3rd-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 DiscriminationEach output unit is sold at a different price. Price may differ across buyers.It requires that the monopolist can discover the buyer with the highest valuation of its product, the buyer with the next highest valuation, and so on.First-degree Price Discrimination$/output unitSell the th unit for $MC(y)p(y)yFirst-degree Price Discrimination$/output unitSell the th unit for $ Later onsell the th unit for $MC(y)p(y)yFirst-degree Price Discrimination$/output unitSell the th unit for $ Later onsell the th unit for $ Finally sell the th unit for marginal cost, $MC(y)p(y)yFirst-degree Price DiscriminationThe gains to the monopoliston these trades are:and zero.$/output unitMC(y)p(y)yThe consumers’ gains are zero.First-degree Price DiscriminationSo the sum of the gains tothe monopolist on all trades is the maximumpossible total gains-to-trade.$/output unitPSMC(y)p(y)yFirst-degree Price DiscriminationThe monopolist gets the maximum possible gains from trade.$/output unitPSMC(y)p