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output but does not affect the total output. On the other hand, the subsidy leads to the monopoly to reduce the dirty output …The paper studies the use of emission taxes and feed-in subsidies for the regulation of a monopoly that can produce the … calculated solving a two-stage policy game between the regulator and the monopoly with the regulator acting as the leader of the …
Persistent link: https://www.econbiz.de/10012146433
Pay-What-You-Want (PWYW) pricing schemes are popular in certain industries and not others. We model the seller's choice of pricing scheme under various market structures assuming consumers share their surplus. We show that the profitability and popularity of PWYW depend not only on consumers'...
Persistent link: https://www.econbiz.de/10013208736
Using an empirical framework derived from models of nonlinear pricing, we estimate the degree of quality degradation in cable television markets. We find lower bounds on quality degradation ranging from 11% to 45% of observed service qualities. Furthermore, cable operators in markets with local...
Persistent link: https://www.econbiz.de/10010293438
This paper studies optimal nonlinear pricing for a monopolist when consumers' preferences exhibit temptation and self-control as in Gul and Pesendorfer (2001a). Consumers are subject to temptation inside the store but exercise self-control, and those foreseeing large self-control costs do not...
Persistent link: https://www.econbiz.de/10010293447
This paper analyses whether scale economies exists in the UK telecommunications industry. The approach employed differs from other UK studies in that panel data for a range of companies is used. This increases the number of observations and thus allows potentially for more robust tests for...
Persistent link: https://www.econbiz.de/10010284108
We analyze self- and joint procurement of countries with heterogeneous demand for a good offered by a price discriminating monopolist. We find that not only countries with low but also with high demand can benefit from committing to jointly procure equal quantities at a uniform price, even if...
Persistent link: https://www.econbiz.de/10014374407
turn into a duopoly and monopoly prices may persist for several periods. Hence, the price-reducing trade effects may take …
Persistent link: https://www.econbiz.de/10012501720
decreasing average cost function typical of natural monopolies. The resulting output allocation yields a lower deadweight loss … than the monopoly allocation, and is, in some cases, efficient. …
Persistent link: https://www.econbiz.de/10012663135
-faire regime, the threat of post-entry price cuts discourages entry, and allows incumbents to charge monopoly prices. Current U …
Persistent link: https://www.econbiz.de/10011784294
We consider market dynamics in a reduced form model. In the simplest version, there are two investors and several small noninvesting firms. In each period, one investor can acquire a small firm, the other investor decides about market entry. After that all firms play an oligopoly game. We derive...
Persistent link: https://www.econbiz.de/10010315536