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ERIC Number: EJ1097290
Record Type: Journal
Publication Date: 2016
Pages: 8
Abstractor: As Provided
ISSN: ISSN-0022-0485
Price Discrimination: A Classroom Experiment
Aguiló, Paula; Sard, Maria; Tugores, Maria
Journal of Economic Education, v47 n2 p132-139 2016
In this article, the authors describe a classroom experiment aimed at familiarizing students with different types of price discrimination (first-, second-, and third-degree price discrimination). During the experiment, the students were asked to decide what tariffs to set as monopolists for each of the price discrimination scenarios under consideration. The objective was to allow the students to work empirically, through trial and error, selecting tariffs for each type of discrimination that would maximize a monopolistic entrepreneur's profits. The purpose of the exercise also was to enable the students to differentiate each type of price discrimination and to set tariffs in each case, as well to help them understand the repercussions in terms of welfare for each type of price discrimination.
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Publication Type: Journal Articles; Reports - Descriptive
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A