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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...
Persistent link: https://www.econbiz.de/10009214159
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 …
Persistent link: https://www.econbiz.de/10005696804
In the modern media industry, in addition to the traditional business model of proprietaryproducts selling, there are a number of new business models that involve free distribution of wholeproducts, or some parts of the products. The advantage of the open business model is in the valuecreation...
Persistent link: https://www.econbiz.de/10008788607
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
In this note, we analyze the equilibrium outcomes of pricing games with product differentiation in relation with the extent of market coverage. It is a received idea in the IO literature that the horizontal and vertical models of product differentiation are almost formally equivalent. We show...
Persistent link: https://www.econbiz.de/10008509902
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
In his book on 'Market Microstructure' Spulber presented some strange results with respect to the impact of the substitutability parameter in an intermediation model with differentiated products and inputs. Intuitively, effects in the product and the input market should be similar: if firms...
Persistent link: https://www.econbiz.de/10009003560
This paper is concerned with the question of how to deal with Google Shopping’s position on online markets in order to prevent harm to public welfare. From the perspective of sellers and buyers of goods and services in Germany, Google can be seen as a gatekeeper to the Internet and thus as an...
Persistent link: https://www.econbiz.de/10011123609
differentiation the duopoly is subsidized or the government remains inactive. In contrast, the monopoly is always subsidized. The …
Persistent link: https://www.econbiz.de/10004969767
Persistent link: https://www.econbiz.de/10011092751