Oligopoly price discrimination with many prices

The model of price discrimination in Cournot-Nash oligopoly is extended to the case of many prices, analogous to 1st degree monopoly price discrimination. In the limit all viable customers are served, but the price charged the keenest customers is well below the highest price charged by a monopoly.

Research Highlights►Price discrimination in oligopoly extended to many prices. ►Relationship between number of firms and average price unchanged. ►In the limit all viable customers are served. ►But not all surplus is extracted by the sellers.