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When a durable good of uncertain quality is introduced to the market, some consumers strategically delay their buying to the next period with the hope of learning the unknown quality. We analyze the monopolist's pricing strategies when consumers have strategic delay incentives. We show when the...
Persistent link: https://www.econbiz.de/10014182987
When a durable good of uncertain quality is introduced to the market, some consumers strategically delay their buying to the next period with the hope of learning the unknown quality. We analyze the monopolist's pricing and "waiting" strategies when consumers have strategic delay incentives. We...
Persistent link: https://www.econbiz.de/10009775796
discrimination will improve monopoly profit if and only if information precision is higher than a certain threshold level. This U … monopoly’s investment in information accuracy. However, this cost should not dissuade firms to collect some information on …
Persistent link: https://www.econbiz.de/10013323970
discrimination will improve monopoly profit if and only if information precision is higher than a certain threshold level. This U … monopoly’s investment in information accuracy. However, this cost should not dissuade firms to collect some information on …
Persistent link: https://www.econbiz.de/10012643538
This paper studies the relationship between three key elements of the marketing mix, namely, price, product, and promotion, in a model where a seller employs informative advertising to launch a new product. We propose a fairly general advertising technology for the study of three promotional...
Persistent link: https://www.econbiz.de/10011318584
We consider a non-durable good monopoly that collects data on its customers in order to profile them and subsequently … find that the monopoly profit is a U-shaped function of the privacy cost whatever the degree of the monopolist … (PHI), it has only enough information for group pricing. We show that in the FIA case, the monopoly equilibrium profit is …
Persistent link: https://www.econbiz.de/10013297136
We consider a non-durable good monopoly that collects data on its customers in order to profile them and subsequently … monopoly equilibrium profit is globally an increasing function of the privacy cost while in the PHI case, it is almost always a …
Persistent link: https://www.econbiz.de/10013213778
This study examines the situation in which a monopolist offers freeware as an advertisement for the increase of demand to maximize profit even though the existence of such freeware will reduce the power of the monopolist in the market. This study proves that the successful application of...
Persistent link: https://www.econbiz.de/10012955291
bunching occurs, the bunching interval is necessarily smaller. Additionally, under certain conditions the monopoly solution may … even achieve the ?rst best (i.e., production ef?ciency). We also demonstrate that the optimal monopoly so- lutions can be …
Persistent link: https://www.econbiz.de/10011704747
explanation to this puzzle by providing a simple framework to analyze a monopoly seller's optimal marketing strategy in terms of …
Persistent link: https://www.econbiz.de/10014048278