Title

Further Study on Second Degree Price Discrimination under Random Linear Demands

Author

Dr. Shaogang Chen, Yi Zhang

Contact Information

University of Electronic Science and Technology, Chengdu , China

Key words

random linear demand, normal distribution, random intervention, second- degree price discrimination

Abstract

This paper, by constructing a random linear function and supposing that random intervention in the function submits to normal distribution, further studies the decision -making of the second degree price discrimination. It points out if expected revenues is aimed, its conclusion is similar to that obtained under the definite demand function. It also states that the manufacturers expected surplus is related to price fluctuation extent and divisional numbers in sections. Finally, under the conditions of two sections and three sections pricing, it obtains the method of determining optimal fixed discount rate. In contrast to the relevant conclusions of the definite demand functions, conclusions of this paper are more conform to realistic economic conditions.

Full-text

Contact: Dr.Obeidat at mobeidat@spsu.edu or lsun@spsu.edu