Intertemporal price discrimination in infinite horizon

- In infinite horizon, a credible durable-good monopolist chooses to discriminate.
- The intertemporal price schedule is ruled by a differential equation.
- The gain of discrimination depends on agents' relative patience.
- The model encompasses Stokey (1979) and Landsberger and Meilijson (1985) as polar cases.

In infinite horizon, a credible durable-good monopolist may resort to intertemporal price discrimination. We provide an analytical characterization of his optimal price policy when consumers and the monopolist have different values for the trade because of distinct discount factors.