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We study the effect of congestion on monopoly second-degree price discrimination. We provide three results. First, with … congestion, the firm does not always provide distinct contracts (i.e., it is not always optimal to price discriminate) and it is … more likely for the low-valuation buyer to be excluded. Second, the presence of congestion implies that no buyer receives …
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This paper models strategic interactions between a product supplier, a provider of information about product quality, and end users, in the context of road transportation. Using a game-theoretical analysis of suppliers' pricing strategies, we assess the social welfare effects of traffic...
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