Price Discrimination Terminology. Last week at the I.O. workshop someone had a good idea for replacing the old 1st, 2nd, 3rd degree price discrimination terminology. Exogenous-feature price discrimination is based on things the buyer can't change that the seller observes, such as his age. Endogenous-feature price discrimination is based on things the buyer can change, such as the quantity he buys or the quality he buys.
Labels: Economics, game theory
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10/29/2007 03:13:00 AM (the permalink).
1 Comments:
Come to think of it, IP's terminology of direct versus indirect price discrimination is perhaps better. It's fewer syllables, and we use the words Endogenous and Exogenous so much anyway in economics.
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