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Preprints, Working Papers, ... (Working Paper) Year : 2022

Price Discrimination with Redistributive Concerns


Consumer data can be used to sort consumers into different market segments, allowing a monopolist to charge different prices at each segment. We study consumer-optimal segmentations with redistributive concerns, i.e., that prioritize poorer consumers. Such segmentations are efficient but may grant additional profits to the monopolist, compared to consumer-optimal segmentations with no redistributive concerns. We characterize the markets for which this is the case and provide a procedure for constructing optimal segmentations given a strong redistributive motive. For the remaining markets, we show that the optimal segmentation is surprisingly simple: it generates one segment with a discount price and one segment with the same price that would be charged if there were no segmentation.
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Dates and versions

hal-04067226 , version 1 (13-04-2023)


Attribution - NonCommercial - NoDerivatives


  • HAL Id : hal-04067226 , version 1


Daniel M A Barreto, Alexis Ghersengorin, Victor Augias. Price Discrimination with Redistributive Concerns. 2022. ⟨hal-04067226⟩
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