Rumors can be classified into two types, according to whether they can credibly predict impending events or not. The analysis of takeover rumors of publically traded US companies from 1990 to 2008 shows that these two types of rumors can be statistically distinguished by returns of rumored...

Under demand uncertainty, a risk-averse seller adopts marginal-cost pricing when clients are homogenous. When the clients are heterogeneous, the optimal unit price tends to move towards marginal cost as the seller's risk aversion increases and equals marginal cost if the seller is infinitely...

This paper studies two-part tariffs with explicit consideration of cost uncertainty and risk aversion. It finds that firms charge a risk premium over expected marginal cost for each unit they sell. This pricing rule is socially optimal if and only if the modeled market is fully covered in...

Rumors can be classified into two types, according to whether they can credibly predict impending events or not. The analysis of takeover rumors of publicly traded US companies from 1990 to 2008 shows that these two types of rumors can be statistically distinguished by returns of rumored...

Under demand uncertainty, a risk-averse firm adopts marginal-cost pricing when consumers are homogenous. When consumers are heterogeneous, the equilibrium price tends to move towards marginal cost as the firm's risk aversion increases and it equates marginal cost if the firm is infinitely risk...

This note compares monopoly equilibrium outcomes with those of duopoly when firms price their products with two-part tariffs. Although a monopolistic firm never charges a lower marginal price than imperfectly competitive firms, it sets a lower entry fee under certain market conditions. In turn,...