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Persistent link: https://www.econbiz.de/10011592823
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
This paper uses tools provided by lattice theory to describe the second-degree price discrimination problem faced by a monopolist seller of a network good, and to give a complete characterization of the optimal contracts it can use. We build a general model in a discrete and a continuous type...
Persistent link: https://www.econbiz.de/10014103016
If a monopoly supplies a perishable good, such as tickets to a performance, and is unable to price discriminate within … a period, the monopoly may benefit from the potential entry of resellers. If the monopoly attempts to intertemporally …, and the monopoly?s problem is not well defined. An arbitrarily small amount of heterogeneity of information among the …
Persistent link: https://www.econbiz.de/10014136699
the monopoly and from the welfare points of view. It is shown that in the two-type consumer case when the monopoly is …
Persistent link: https://www.econbiz.de/10014058904
This paper presents a model of second-degree price discrimination by a monopolistic seller who offers a menu of price-quantity pair contracts to consumers located in a social network. Network effects are local as consumers' private valuations are increasing in their friends' adoption decisions....
Persistent link: https://www.econbiz.de/10013004864
We consider second-degree price discrimination for two types of consumers. When the net-of-cost valuation functions cross at least once at some positive quantity, it is always optimal to serve both types of consumers. Moreover, the type with the higher valuation peak always gets the socially...
Persistent link: https://www.econbiz.de/10013022346
This pedagogical note explains how the same basic principle can be applied to explain the profit-maximizing behavior of a monopolist under both linear and nonlinear pricing by introducing an average price function. It is shown that optimal conditions under nonlinear pricing are similar to that...
Persistent link: https://www.econbiz.de/10014028199
customers, the resulting entry-deterring monopoly contract is a fixed fee and results in the socially optimal outcome. However …
Persistent link: https://www.econbiz.de/10014031167
We investigate the welfare effects of third-degree price discrimination by a two-sided platform that enables interaction between buyers and sellers. Sellers are heterogenous with respect to their per-interaction benefit, and, under price discrimination, the platform can condition its fee on...
Persistent link: https://www.econbiz.de/10014343799