In a two-firm model where each firm sells a high-quality and a low-quality version of a product, customers differ with respect to their brand preferences and their attitudes towards quality. We show that the standard result of quality-independent markups crucially depends on the assumption that...

We consider the optimal market segmentation problem of a monopolist that faces a continuum of customers when it is costly to prevent resale (or parallel trade) among groups. In our framework, the monopolist chooses the number k of market segments, but also their design and the discriminatory...

In this paper we analyze customer-class price discrimination in the face of uncertain demands. More precisely, we explore the pricing decision of a multiproduct monopoly facing random, correlated demands. We consider only a uniform price for each customer class; multi-part pricing is not...