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monopoly, and later by a cartel which in turn was firmly controlled by the former monopolist - De Beers. The existence of a … the paper investigates how the monopoly creates prices which increase slowly but continually. In addition, we discuss … problems threatening the monopoly. However, the major problem is the durability of the diamond. This may cause the diamond …
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-quality menus to segment the market. We show that, contrary to the Coase conjecture for the homogeneous durable good monopoly …
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A durable good monopolist faces a continuum of heterogeneous customers who make purchase decisions by comparing present and expected price-quality offers. The monopolist designs a sequence of price-quality menus to segment the market. We consider the Markov Perfect Equilibrium (MPE) of a game...
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