The Incentive of a Monopolist to Provide All Goods

This note shows that a monopolist facing any linear demand system for n goods and no fixed costs will produce positive quantities of all goods as long as demand is positive for all goods when all are sold at marginal cost. This is in contrast with the traditional view that, in general, a multiproduct monopolist does not produce positive quantities of all goods even though there is positive demand for each of them when prices are equal to marginal cost.

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Year of publication:	1995-07
Authors:	Economides, Nicholas
Institutions:	Economics Department, Stern School of Business
Subject:	monopoly \| linear demand

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Classification:	L1 - Market Structure, Firm Strategy, and Market Performance ; D4 - Market Structure and Pricing
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005101714