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affects the optimal price/price markup or optimal quantity. A monopoly example is used to show that seemingly strong … uncertainty types can lead to quite special results. Monopoly examples of the newsboy problem type are further used to show that …
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fees for the service provider that always exceed the monopoly level. Although losses in welfare may be substantial, a …
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fees for the service provider that always exceed the monopoly level. Although losses in welfare may be substantial, a …
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This paper analyzes optimizing decisions of a monopolist under uncertainty. The aspiration model directly accounts for asymmetric risk preferences with respect to downside risk. The optimal output (price) of a risk-averse monopolist facing marginal cost uncertainty will not exceed that of his...
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