Agbo, Maxime; Santugini, Marc; Williams, Jonathan W. - Centre Interuniversitaire sur le Risque, les Politiques … - 2012
We study the effect of congestion on monopoly second-degree price discrimination. We provide three results. First, with congestion, the firm does not always provide distinct contracts (i.e., it is not always optimal to price discriminate) and it is more likely for the low-valuation buyer to be...