Analysis on Second-Degree Price Discrimination under the Condition of Competition Based on Game Theory

Under the condition of linear demand function,the method of second-degree price discrimination is analyzed in the case of two oligopoly enterprises by using complete information static game theory to determine the condition of revenue maximization.The results show that:when two oligopoly firms divide demand to enforce price discrimination,the necessary condition of revenue maximization is to divide demand into some intervals and let the length of each ones become geometric series,whose common ratio is 1/2.At the same time,equilibrium discriminative production and price and equilibrium discriminative total revenue of market of second-degree price discrimination in the oligopoly market were presented.