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monopoly entrusts pricing decisions to a manager who enjoys monetary rewards but dislikes production effort. We show that cheap …
Persistent link: https://www.econbiz.de/10012721849
We examine an infinite horizon model of quality growth in a durable goods monopoly market. The monopolist generates new …
Persistent link: https://www.econbiz.de/10012723743
I provide a simple proof that a monopsony must necessarily be a monopoly. This is in contrast to authors who have … previously asserted that either no relation exists between monopsony and monopoly, or who have relied upon additional assumptions …
Persistent link: https://www.econbiz.de/10012955779
We show that a manager who has to pick a variety at a store without being able to choose the price of products on the horizontally differentiated market with positive fixed costs of offering each product will always under-provide variety. Using the information on sales and availability of vodka...
Persistent link: https://www.econbiz.de/10012961219
according to steel type and there is a dominant steel producer acting as a monopoly in the market. Due to barriers to entry in … the short run and the dominant market position of the monopoly, price elasticity became more demand inelastic. However …
Persistent link: https://www.econbiz.de/10012895236
We explain why a durable-goods monopolist would like to create a shortage in the marketplace.We argue that this incentive arises from the presence of a second-hand market and uncertainty about consumers' willingness to pay for the good. Consumers are heterogeneous in their valuations. Moreover,...
Persistent link: https://www.econbiz.de/10012940488
We introduce in this paper the quot;incompletequot; third-degree price discrimination, which is the situation in which a monopolist must charge at most k different prices while the total market is composed of n (local) markets, with ngt;k. We thus study the optimal partition problem of the n...
Persistent link: https://www.econbiz.de/10012765069
output but does not affect the total output. On the other hand, the subsidy leads to the monopoly to reduce the dirty output …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 …
Persistent link: https://www.econbiz.de/10012866610
This paper considers dynamic pricing strategies in a durable good monopoly model with uncertain commitment power to set …
Persistent link: https://www.econbiz.de/10012872178
This paper investigates a stepwise tax/subsidy structure on a monopoly practicing quantity discounts. It covers four …
Persistent link: https://www.econbiz.de/10013006234