Download or read book Price Discrimination Under Uncertainty of Consumers' Fairness Concerns written by Tomohisa Okada and published by . This book was released on 2018 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores the effects of the unpredictability of consumers' fairness concerns on monopolistic third-degree price discrimination. We develop a simple repeated game framework to consider the monopolist's pricing strategy in the long run. In contrast to previous studies, we focus on an information disclosure mechanism derived from unpredictability of consumers' fairness concerns: the intensity of the resulting backlash is unknown until firms treat consumers unfairly. Although consumers' fairness concerns tend to lead to uniform pricing even in the absence of fairness unpredictability, this mechanism enhances this tendency and works to sustain uniform pricing in the long run.