This paper examines the dynamic pricing problem of a durable-good monopolist when product quality is endogenous. It is shown that the relationship between the firm's quality choice and the time-inconsistency problem crucially depends on how the unit production cost varies with quality. The...

The recently proposed family of hypernormal density functions possess the analytically convenient and computationally efficient property of closed form moments and anti-derivatives in the univariate case. While this result allows many univariate applications to be solved faster and/or more...

The paper analyzes calling party pays access pricing policies in a General Equilibrium two ways access charge model with consumers that choose between different telecommunication providers, and benefit from making calls to other consumers and from the calls that they receive. We obtain that...

This paper addresses the relationship between individual perceptions and the uses of a business language. Perceptions are modeled explicitly, and are not common knowledge. A business language enables individuals with different perceptions to trade. I present a formal criterion for faithfulness...

We examine a dynamic, durable goods model. A monopolist faces two types of consumers who value the monopolist’s goods differently. The quality of the good improves over time and an improvement is only valuable to consumers if they have previous improvements. In each period, the monopolist can...

The Spence model (1975) is extended so that customers’ utility depends on their disposition to the firm in addition to quantity and quality of the good consumed. Disposition is determined by customers’ perception of firm’s pricing and quality decisions, which perception is...

A modern firm often employs multiple production technologies based on distinct engineering principles, causing non-convexities in the firm's unit cost as a function of product quality. Extending the model of Mussa and Rosen (1978), this paper investigates how a monopolist's product line design...