Palgrave Encyclopedia of Strategic Management, Eds. Mie Augier, David J. Teece, ISBN 978-1-137-49190-9, Palgrave Macmillan UK, 2016
2 Pages Posted: 8 Jun 2017
Date Written: 2014
Price discrimination requires sufficient separability of customers, sufficiently high costs of arbitrage and sufficient market power. It involves transferability of the good and/or transferability of demand. It can be categorized as first degree (or perfect), second degree (or self-selection), or third degree (multimarket). Its impact on consumer surplus is ambiguous.
Keywords: Price Discrimination, Market Power, Pricing, First Degree, Second Degree, Third Degree, Multimarket
JEL Classification: D21, D42, D43
Suggested Citation: Suggested Citation