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st: New package -tdpd- added to SSC


From   WEBER Sylvain <sylvain.weber@unine.ch>
To   "statalist@hsphsun2.harvard.edu" <statalist@hsphsun2.harvard.edu>
Subject   st: New package -tdpd- added to SSC
Date   Thu, 15 Nov 2012 22:46:43 +0000

Hello,

Thanks to Kit Baum, a new package -tdpd- for third-degree price discrimination is now available from SSC. Stata 8 up is required to use it. 
-tdpd- is a quite unusual Stata package, in the sense that it has nothing to do with econometrics. It will be of interest for those involved in teaching economics, and more particularly industrial organization. It should prove especially useful to lecturers and TAs who have to concoct new exercises in order to end up with an original exam each year.
-tdpd- solves the problem of a monopolist facing two groups of consumers, both in the discriminating and the non-discriminating cases. It computes the optimal total output to produce, the allocation of this output between the groups of consumers, prices charged to each group, profit of the monopolist, asf. Graphical representations are provided for the two types of monopolies. The consumers' demand functions are linear; the cost of the monopolist is a quadratic function of output.

If interested:
. ssc install tdpd

Additional explanations concerning price discrimination and -tdpd- can be found in Weber & Pasche (2008). Please let me know if you think of possible improvements or notice inappropriate behavior of the command. I have some other packages solving simple economic problems that I should be able to provide in the near future.

Best wishes,

Sylvain

Reference:
Weber, S. & Pasche, C. (2008) "Price Discrimination", Journal of Industrial Organization Education: Vol. 3, Iss. 1, Article 1.

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