Price Discriminate. Second Application Of Basic Research

Two-class price discrimination is the classical theory in the economy, is a effective pricing method. Applying two-class price discrimination not only increase manufacture's profit, but improve consumer's welfare. This paper based on the theory of two-class price discrimination, as the point of view of manufactures, use games theory as tool, compares the two model of economy's manufacture's profit, that is Cournot and Stackelberg, when they applying two-class price discrimination.The main results are as follows:1.Talked about Cournot model, and apply two-class price discrimination to the manufacture of Cournot model, then extend the result.2.Talked about Stackelberg model, and modify the hypothesis to fit the realism; at the same time, apply two-class price discrimination to the manufacture of Stackelberg model. At last compared the result of applying or not.3.Disparted the n manufactures of Cournot model into two groups, analysised the result of the two groups'games and two-class price discrimination, and compared the profit in different instance.