Versioning Goods and Joint Purchase: Substitution and Complementarity Strategies

We analyze the monopolist’s decision about how to design different versions of a good, i.e. whether to make them substitutes or complements, when consumers can buy them simultaneously. In this context, we find that versioning goods as substitutes or complements may be optimal for the monopolist, and the final result depends on the degree of concavity and convexity of the cost function.

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Year of publication:	2007-12-31
Authors:	Martinez, Francisco
Institutions:	Departamento de Teoría e Historia Económica, Facultad de Ciencias Económicas y Empresariales
Subject:	Versioning Goods \| Joint Purchase Option \| Substitutes \| Complementarity \| Price Discrimination \| Market Segmentation

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Extent:	application/pdf
Series:	ThE Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 07/06 12 pages
Classification:	L10 - Market Structure, Firm Strategy, and Market Performance. General ; L12 - Monopoly; Monopolization Strategies ; L15 - Information and Product Quality; Standardization and Compatibility
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005138512