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This paper analyzes optimal pricing for information goods under incomplete information, when both unlimited-usage (fixed-fee) pricing and usage-based pricing are feasible and administering usage-based pricing may involve transaction costs. It is shown that offering fixed-fee pricing in addition...
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intensity of preference for quality and their income, we study the optimal strategy of a natural monopoly : how many qualities … to produce ? Which qualities should be produced? What prices have to be set to maximize the monopoly profit? Considering … costless production, the monopoly optimal strategies are such that the consumers with the same income buy the same quality. The …
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Existing studies show that intermediaries can help verify or screen product quality for buyers. This paper examines this claim both theoretically and empirically in the context of international trade. We develop a heterogeneous-firm model that features vertical and horizontal differentiations of...
Persistent link: https://www.econbiz.de/10010667722
Existing studies show that intermediaries can help verify or screen product quality for buyers. This paper examines this claim both theoretically and empirically in the context of international trade. We develop a heterogeneous firm model that features vertical and horizontal differentiation of...
Persistent link: https://www.econbiz.de/10010626168
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