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Price Discrimination

This is a research report on Price Discrimination uploaded by Ronak Raichura in category: All Documents »  Economics »  Micro-Economics section of our research repository.
925 views, 0 comments, Last Update: Apr 3, 2012.
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Tags: price discrimination , perfect substitutes , prevent arbitrage , re-selling , secondary exchange
Description:
Price discrimination or price differentiation exists when sales of identical goods or services are transacted at different prices from the same provider. In a theoretical market with perfect information, perfect substitutes, and no transaction costs or prohibition on secondary exchange (or re-selling) to prevent arbitrage, price discrimination can only be a feature of monopolistic and oligopolistic markets, where market power can be exercised.



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