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When a durable good of uncertain quality is introduced to the market, some consumers strategically delay their buying to the next period with the hope of learning the unknown quality. We analyze the monopolist's pricing and "waiting" strategies when consumers have strategic delay incentives. We...
Persistent link: https://www.econbiz.de/10009775796
discrimination will improve monopoly profit if and only if information precision is higher than a certain threshold level. This U … monopoly’s investment in information accuracy. However, this cost should not dissuade firms to collect some information on …
Persistent link: https://www.econbiz.de/10013323970
-quality menus to segment the market. We show that, contrary to the Coase conjecture for the homogeneous durable good monopoly …
Persistent link: https://www.econbiz.de/10013324224
our theory is the health care market, where drug prices can be very high. Our model predicts that monopoly prices for … literature. As a result, prices of drugs sold by a monopoly treating rare serious diseases are doomed to go sky high. …
Persistent link: https://www.econbiz.de/10012416335
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 …
Persistent link: https://www.econbiz.de/10011695228
I investigate a simple model of advance-purchase contracts as a mode of financing costly projects. An entrepreneur has to meet some capital requirement in order to start production and sell the related good to a limited number of potential buyers who are privately informed about their...
Persistent link: https://www.econbiz.de/10011595436
This paper studies how competition and vertical structure jointly determine generating capacities, retail prices, and welfare in the electricity industry. Analyzing a model in which demand is uncertain and retailers must commit to retail prices before they buy electricity in the wholesale...
Persistent link: https://www.econbiz.de/10012023903
The paper studies the use of emission taxes and feed-in subsidies for the regulation of a monopoly that can produce the … calculated solving a two-stage policy game between the regulator and the monopoly with the regulator acting as the leader of the … output but does not affect the total output. On the other hand, the subsidy leads to the monopoly to reduce the dirty output …
Persistent link: https://www.econbiz.de/10012028355
I investigate a simple model of advance-purchase contracts as a mode of financing costly projects. The analysis can easily be reinterpreted as a model of the monopolistic provision of excludable public goods under private information. An entrepreneur has to meet some capital requirement in order...
Persistent link: https://www.econbiz.de/10011350183
market, monopoly pricing is well defined - as well as tests for predatory behavior; not so with multisided markets. Since the … markets for their potential for determining consumers' harm and welfare effects, as well as defining monopoly and predatory …
Persistent link: https://www.econbiz.de/10012151937