TAILIEUCHUNG - Lecture Microeconomics (5th edition): Chapter 12 - Besanko, Braeutigam

Lecture Microeconomics (5th edition): Chapter 12 - Capturing surplus. This chapter presents the following content: introduction - airline tickets; price discrimination: first degree, second degree, third degree; tie-in sales. | 1 Capturing Surplus Chapter 12 Copyright (c)2014 John Wiley & Sons, Inc. 1 2 Chapter Twelve Overview Introduction: Airline Tickets Price Discrimination First Degree Second Degree Third Degree Tie-in Sales Requirements Tie-ins Package Tie-ins (Bundling) Chapter Twelve Copyright (c)2014 John Wiley & Sons, Inc. 3 Chapter Twelve Uniform Price Vs. Price Discrimination Definition: A monopolist charges a uniform price if it sets the same price for every unit of output sold. While the monopolist captures profits due to an optimal uniform pricing policy, it does not receive the consumer surplus or dead-weight loss associated with this policy. The monopolist can overcome this by charging more than one price for its product. Definition: A monopolist price discriminates if it charges more than one price for the same good or service. Copyright (c)2014 John Wiley & Sons, Inc. 4 Chapter Twelve Forms of Price Discrimination Definition: A policy of first degree (or perfect) price discrimination prices

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