Kim, Jae-Cheol; Ahn, Byong-Hun; Moon, Hyun-Joo - In: Journal of Regulatory Economics 4 (1992) 2, pp. 159-73
This paper analyzes the self-selection problem in a monopoly market where (1) consumer types are characterized by both utility of service and disutility of interrupted service and (2) qualities (reliabilities) are interdependent. The authors derive behavior of a profit-maximizing monopolist in...