Will price discrimination bring in more rent-seeking act?

2007-05-05 1:45 am
Will price discrimination bring in more rent-seeking activities? please answer in detail

Thanks alot

回答 (1)

2007-05-06 8:51 am
✔ 最佳答案
With well defined private property right, a maximizing individual always acts to maximize economic rent. As long as the price discrimination is a voluntary practice it always acts to maximize rent. If price discimination is not voluntarily practised it implies the transaction cost is too high or there are other alternatives that can ensure more rent. In such a case, price discrimiantion may not bring in more rent seeking activities.


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