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Reconciliation Act of 1990 included a rebate program that featured a most favored customer (MFC) clause. This clause guarantees that … Medicaid gets a fixed rebate on each unit of purchase by Medicaid consumers. The rebate is calculated as the difference between … discriminating monopolist in response to the imposition of MPP or APP rules. Under MPP, the minimum price gross of rebate always …
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When products are sold in advance, i.e. prior to consumption, consumers trade off an early, uninformed purchase at a low price against a late, informed purchase at a high price. This paper considers the effect of market structure on the prevalence of advance selling. We show that in an...
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