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Price Discrimination using Linear and Nonlinear Pricing Simultaneously


Babu Nahata


University of Louisville - College of Business - Department of Economics

Staffan Ringbom


Swedish School of Economics and Business Administration
June 2006


Abstract:     
Price discrimination practiced by using linear and nonlinear pricing simultaneously raises the average price for heterogenous consumers paying linear price but lowers for homogeneous group who pay nonlinear price. Discrimination lowers consumer surplus for both groups but increases total surplus.

Number of Pages in PDF File: 8

Keywords: Price discrimination, non-linear pricing

JEL Classification: D4, L11

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Date posted: June 17, 2006  

Suggested Citation

Nahata, Babu and Ringbom, Staffan, Price Discrimination using Linear and Nonlinear Pricing Simultaneously (June 2006). Available at SSRN: http://ssrn.com/abstract=909279 or http://dx.doi.org/10.2139/ssrn.909279

Contact Information

Babu Nahata (Contact Author)
University of Louisville - College of Business - Department of Economics ( email )
Louisville, KY 40292
United States
502-852-4864 (Phone)
Staffan Ringbom
Swedish School of Economics and Business Administration ( email )
P.O. Box 479
Helsinki, 00101
Finland
358 9 4313 3416 (Phone)
358 9 4313 3382 (Fax)
Feedback to SSRN (Beta)


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