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Price markups over marginal cost are often higher on "aftermarket" parts and services for durable goods than they are on the goods themselves. A popular explanation is that the aftermarket good is used as a "metering" device. This paper explores what happens in the metering model as foremarket...
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effects of third-degree price discrimination under imperfect competition other than monopoly. At first, it seems that it may … complicate the analysis under monopoly. However, we argue that the main thrusts of analysis under monopoly carry over to the case …
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