After reading this chapter, students should be able to: - Define price discrimination and the conditions necessary for price
discrimination to be successful.
- Identify various ways that a firm can price discriminate.
- Describe the outcome of perfect price discrimination and its welfare
effects.
- Identify a monopolist's profit-maximizing prices when it can discriminate
based on observable customer characteristics and calculate the
welfare effects of that discrimination.
- Understand how pricing based on self-selection can increase a firm's
profit.
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