Price discrimination using linear and nonlinear pricing simultaneously |
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| Affiliation: | 1. Department of Statistics and Operations Researches, College of Science, King Saud University, P.O. Box 2455, Riyadh 11451, Saudi Arabia;2. Department of Mathematics, Faculty of Science, Mansoura University, Mansoura 35516, Egypt |
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| Abstract: | Price discrimination practiced by using linear and nonlinear pricing simultaneously raises the average price for heterogenous consumers paying linear price but lowers for homogeneous group who pay nonlinear price. Discrimination lowers consumer surplus for both groups but increases total surplus. |
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