Abstract
In recent years, online group purchase companies are thriving. In group purchase, according to the third- degree price discrimination principle, consumers get extra utility, and at the same time new areas of growth are created by merchants. Thus, third-degree price discrimination strategy can enhance both market efficiency and social welfare. In this research, the game theory model and the utility function are used to show that online group purchase can not only improve producers and consumers’ welfare, and also promote social welfare.
