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A key to the Coase conjecture is the monopolist's inability to commit to a price, which leads consumers to believe that a high current price will be followed by low future prices. This paper studies the robustness of the Coase conjecture with respect to these beliefs of consumers. In particular,...
Persistent link: https://www.econbiz.de/10011699204
Roy (Safety First and the Holding of Assets, 1952) argues that decisions under uncertainty motivate firms to avoid bankruptcy. In this paper, the authors ask about the behaviour of a monopolist who pre-commits to price when she has only probabilistic knowledge about demand. They argue that...
Persistent link: https://www.econbiz.de/10011342105
This paper investigates the influence of monetary policy on the optimal behavior of a monopolistic bank. More specifically, we discuss how the overdraft rate and the minimum reserve requirements affect the equilibrium values of lending rate and deposit rate as well as the corresponding...
Persistent link: https://www.econbiz.de/10009782807
The paper studies the use of emission taxes and feed-in subsidies for the regulation of a monopoly that can produce the … the regulator and the monopoly with the regulator acting as the leader of the game. We find that the second-best tax rate …
Persistent link: https://www.econbiz.de/10012589030
This paper studies the price-setting problem of a monopoly that in each time period has the option of failing to … deliver its good after receiving payment. The monopoly may be induced to deliver the good if consumers expect that the … monopoly will not deliver in the future if it does not deliver today. If the good is non-durable and consumers are anonymous …
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