Toll Free:

Live chat
Order now Log In
Toll Free:

Second Degree Price Discrimination

Second Degree Price Discrimination

Second price discrimination is also called non-linear pricing. This discrimination, like other price discrimination, is practiced by firms with monopoly power. Here, the firm sells different quantities of outputs for different prices per unit. The discrimination is not among the customer and hence for those who buy equal quantities of a commodity pay equal price per unit. The monopolist provides the same schedule of prices to all consumers and the consumer decides independently, the quantity to buy and price to pay (Kwoka, 1979).

What to now

A firm has imperfect information about the buyers and their preferences. However, as long as it is a price maker and that there no other firm to take advantage of the firm’s pricing strategies, then it can adopt second degree price discrimination as long as they retain control of prices. There are other things that it must be aware of. 

To start with, the seller must be able to indentify different buyers. In this case, the seller has to know the various price elasticity of demand so as to tell the implication of charging higher or lesss in relation to the quantity purchased. If elasticity and willingness to pay are the same then discrimination should not be adopted (Kwoka, 1979).

Secondly, the seller must be aware of the possibility of arbitrage amongst the consumer. It should be such that, to those that are able to buy in bulk and at a lower price, they are not able to resell the goods to others at higher prices, lest discrimination would be detrimental to the firm. Therefore the monopoly should be able to separate and keep the market segment separate (Kwoka, 1979).

Limited
time offer

0
0
DAYS
:
0
0
HOURS
:
0
0
MINUTES
:
0
0
SECONDS
Your special

 

Related Free Business Essays

 
 

Essay

We offer original custom essays in a wide range of subjects. No matter the topic, you will get an impressive essay.

 

Discussion Board Post

If you want to get the best discussion board post at an affordable price, just apply to our experts for help.

 

Research paper

If you experience any difficulties in writing research papers, welcome to us. We produce unique academic papers only!

 

Coursework

Ask our experienced and highly educated writers to help you write your coursework, and you will get an impeccable and original paper.

 

Case Study

Use case study writing services offered by our reputable company. We guarantee to deliver only premium papers.

 

Questions-Answers

You can buy a unique questions-answers essay from our custom writing agency online. Hire us to help you succeed!

 

Powerpoint Presentation

Every time you are looking for a place to purchase a high-quality and creative PowerPoint presentation, visit our website.

 

Term paper

If you need help in writing a quality term paper, contact us. Our skilled writers specialize in creating authentic papers.

 

Response paper

Hire our experienced writers to produce a perfectly written response paper for you. We are dedicated to your success.

 

Formatting

Use the first-class custom formatting service provided by our diligent experts. We can help you format papers in all styles.

 

Research proposal

If you do not know how to write a research proposal, make use of our superb research proposal writing services whenever you need.

 

Dissertation

Order a dissertation written by a professional PhD writer. You will be completely satisfied with your piece of writing.

 

Article Review

When writing an original article review turns out a difficult task for you, entrust it to our professionals to do it in no time.

 

Literary analysis

If you need expert assistance in writing a literary analysis essay, choose our reliable service to do the job. Order your essay now!

 

Rewriting

We can help you paraphrase any of your academic papers. Thus, if you need rewriting help, use our services and get high grades.

 

Reaction paper

Forget about reaction paper writing difficulties! Ask our qualified writers to help you express unique thoughts and reactions on the subject.

 

Excel Exercises

Leave the details of your Excel assignment to our competent writers, and they will do it professionally and fast, no matter its difficulty.

 

Annotated Bibliography

Acquire our remarkable annotated bibliography writing services! We charge the most affordable prices and never compromise on quality.

 

Business Report

In case you need professional assistance with business report writing, turn to our company. We will provide you with a flawless paper.

 

Outline

Purchase a well-structured and unique outline from us online, and get a brilliant paper. We write custom outlines to all papers.

See more testimonials

4th of July
Happy Independence Day!

Get 18% off all services

with code: IndependenceDay
Order now
X
Online - please click here to chat