Carbajal, Juan Carlos; Ely, Jeffrey C. - In: Theoretical economics : TE ; an open access journal in … 11 (2016) 2, pp. 455-485
We study optimal price discrimination when a monopolist faces a continuum of consumers with reference-dependent preferences. A consumer's valuation for product quality consists of an intrinsic valuation affected by a private state signal (type), and a gain-loss valuation that depends on...