The Limits of Interval-Regulated Price Discrimination
In this paper, we study third-degree price discrimination in a model first presented in Bergemann, Brooks, and Morris [2015]. Since such price discrimination might create market segments with vastly different posted prices, we consider regulating these prices, specifically, via restricting them to lie within an interval. Given a price interval, we consider segmentations of the market where a seller, who is oblivious to the existence of such regulation, still posts prices within the price interval. We show the following surprising result: For any market and price interval where such segmentation is feasible, there is always a different segmentation that optimally transfers all excess surplus to the consumers. In addition, we characterize the entire space of buyer and seller surplus that are achievable by such segmentation, including maximizing seller surplus, and simultaneously minimizing buyer and seller surplus.
Code (0)
등록된 구현이 없습니다.
Tasks
SegmentationSimilar Papers 제목 키워드 기반
Non-Discriminatory Personalized Pricing
A monopolist offers personalized prices to consumers with unit demand, heterogeneous values, and idiosyncratic costs, who differ in a protected characteristic, such as race or gender. The seller is subject to a non-discr…
Sticky information and price controls: Evidence from a natural experiment
We test the predictions of the sticky information model using a survey dataset by comparing shoppers accuracy in recalling the prices of regulated and comparable unregulated products. Because regulated product prices are…
What Matters to Individual Investors: Price Setting in Online Auctions of P2P Consumer Loans
We analyze how retail investors price the credit risk of online P"P consumer loans in a reverse auction framework where personal interaction is absent. The explained interest rate variance is considerably larger than in …
Bayesian Neural Networks with Monte Carlo Dropout for Probabilistic Electricity Price Forecasting
Accurate electricity price forecasting is critical for strategic decision-making in deregulated electricity markets, where volatility stems from complex supply-demand dynamics and external factors. Traditional point fore…
Market-Based Asset Price Probability
We consider volume weighted average price (VWAP) as the 1st market-based statistical moment and derive the dependence of higher statistical moments of price on statistical moments and correlations of the values and volum…
Time SeriesTime Series Analysis