Abstract
Recently, Bulow and Roberts have indicated that there is a close correspondence between the optimal auction mechanism introduced by Myerson and the problem of a monopolist practising third-degree price discrimination in several markets. They find differences, however, in the choice variables and in the constraints of the two problems. A reinterpretation of the price-discrimination problem leads to the demonstration that an optimal auction is an optimal way to practise price discimination.
Full Text 
Sign-in/Register to access full text options
Sign-in/Register to access full text options 
Published version (
Free)
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
