Consumers' Risk Attitude and Price Discrimination

• Main Authors: LEE HSIU-CHUNG, 李秀中
• Other Authors: ChIU HSIEN-HUNG
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/29994897026279325833

碩士 === 國立暨南國際大學 === 經濟學系 === 104 === This paper shows how a monopolistic firm uses menu pricing to practice price discrimination when consumers face demand uncertainty and are risk averse. To this end, this paper uses mean-variance utility form to define consumers’ expected utility, and look for the optimal decision for the firm. This paper discusses two forms of menu pricing: 1) the menu with refundable goods and non-refundable goods; 2) the menu with advanced sale good and spot sale good. We compare menu pricing, menu profits, and social welfare between two these two menus. We find that the menu with advanced sale good and spot sale good leads to a higher seller’s profit as well as higher social welfare than the other menu. As for optimal pricing, we find that the price of advanced sale and non-refundable goods always decrease with consumers’ demand uncertainty. By contrast, the price of the refundable goods has a non-monotonic relationship with consumers’ demand uncertainty.