Redistribution Through Market Segmentation

Fuente: arXiv
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Hauptverfasser: Augias, Victor, Ghersengorin, Alexis, Barreto, Daniel M. A.
Format: Preprint
Veröffentlicht: 2024
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author Augias, Victor
Ghersengorin, Alexis
Barreto, Daniel M. A.
author_facet Augias, Victor
Ghersengorin, Alexis
Barreto, Daniel M. A.
contents We study how to optimally segment monopolistic markets with a redistributive objective. We characterize optimal redistributive segmentations and show that they (i) induce the seller to price progressively, i.e., charge richer consumers higher prices than poorer ones, and (ii) may not maximize consumer surplus, instead granting extra profits to the monopolist. We further show that optimal redistributive segmentations are implementable via price-based regulation.
format Preprint
id arxiv_https___arxiv_org_abs_2406_14174
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Redistribution Through Market Segmentation
Augias, Victor
Ghersengorin, Alexis
Barreto, Daniel M. A.
Theoretical Economics
We study how to optimally segment monopolistic markets with a redistributive objective. We characterize optimal redistributive segmentations and show that they (i) induce the seller to price progressively, i.e., charge richer consumers higher prices than poorer ones, and (ii) may not maximize consumer surplus, instead granting extra profits to the monopolist. We further show that optimal redistributive segmentations are implementable via price-based regulation.
title Redistribution Through Market Segmentation
topic Theoretical Economics
url https://arxiv.org/abs/2406.14174