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We examine pricing strategies for a multiproduct monopolist. We show that simple quantity discounting strategies are almost as profitable as fully optimal bundling. We investigate this in an empirical example, using data from a theater company
Persistent link: https://www.econbiz.de/10004977908
In this paper, we analyze the problem of store design when consumers have preferences with temptation and self-control, as introduced by Gul and Pesendorfer (2001). We say that a monopolist designs its stores when it chooses the number of stores to open and the quality and price of the goods to...
Persistent link: https://www.econbiz.de/10005085470
Firms often offer menus of two-part tariffs to price discriminate among consumers with heterogeneous preferences. In this paper we study the effectiveness of this screening mechanism when consumers are uncertain about the quality of the good and resolve this uncertainty through consumption...
Persistent link: https://www.econbiz.de/10005069234