monopoly problem when the price imperfectly signals quality to the uninformed buyers. We then study the effect of noise on … output, market price, information flows, and expected profits. The presence of noise may reduce the informational externality …

We embed signaling in the classical Cournot model in which several firms sell a homogeneous good. The quality is known … quantity decision. We characterize the unique signaling Cournot equilibrium in which the price signals quality to the … to all the firms, but only to some buyers. The quantity-setting firms can manipulate the price to signal quality. Because …

quality signaling or as a coordination device is described and discussed. The chapter then moves on to an analysis of the …

begins by characterizing the optimal regulation of a monopoly supplier that is better informed than the regulator about its …. Yardstick regulation, procedures for awarding monopoly franchises, and optimal industry structuring are analyzed. The chapter …

that quantity. Given this information and through a learning process the firm estimates a linear subjective demand curve …

upstream monopolist to limit output to monopoly levels, whereas a disintegrated structure will ‘over-sell’, producing more in … is, supply less than their monopoly output. Low-cost firms continue to over-sell, so all types of firms have a reason to …

learning by charging a price that results in information revelation. Nonetheless in the long run, the monopolist generally …

The quality of output is of great concern to firms, consumers and regulators and yet firms' decisions concerning … quality receive far less attention from economists than quantity or pricing decisions. There is a substantial management … literature on product quality which, to some extent, discusses the costs and benefits of various approaches to product quality …

Advertising and price have been shown to signal product quality. Most works limit the number of types to high and low … quality. I characterize the optimal separating marketing strategy when both quality and marginal cost are uncertain and …

brands. Under constant tax rates, a monopoly sells different brands to social classes of equal measure, while in contestable …, while a monopoly faces an adequate flat tax rate to all brands. In contrast with extant literature, subsidies may be …