Chaotic Discrimination and Non-Linear Dynamics | Science Publications

American Journal of Applied Sciences

Partha Gangopadhyay¹ 

关键词: Nash Equilibrium;    Price Discrimination;    Fixed Points;    Stability;   

DOI  :  10.3844/ajassp.2005.440.442

学科分类：自然科学（综合）

来源: Science Publications

【 摘 要 】

This study examines a particular form of price discrimination, known as chaoticdiscrimination, which has the following features: sellers quote a common price but, in reality, theyengage in secret and apparently unsystematic price discounts. It is widely held that such forms of pricediscrimination are seriously inconsistent with profit maximization by sellers.. However, there is notheoretical salience to support this kind of price discrimination. By straining the logic of non-lineardynamics this study explains why such secret discounts are chaotic in the sense that sellers fail to adoptprofit-maximising price discounts. A model is developed to argue that such forms of discrimination mayderive from the regions of instability of a dynamic model of price discounts.

【 授权许可】

Unknown