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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/10012643538
This paper studies the role of taxation in durable good markets with dynamic monopolies. By conditioning the marginal tax rate on the volume of trade, the social planner can provide incentives for the monopolist to abandon sequential screening and clear the market immediately in unique...
Persistent link: https://www.econbiz.de/10012853715
We provide a general definition of bundling that encompasses the bundling of two or more objects over sets of three or more objects. Bundled objects may be units of the same product, different products, or both. Such bundling encompasses a range of controversial pricing practices that have drawn...
Persistent link: https://www.econbiz.de/10012921218
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
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
We consider a heretofore unexplored explanation for why platforms, such as Internet service providers and mobile-phone networks, offer plans with download limits: through one of two mechanisms, doing so causes the providers of the content consumer purchase to either reduce their prices or...
Persistent link: https://www.econbiz.de/10013026975
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
Ludwig von Mises and Murray Rothbard tended to emphasize the same requirement for a monopoly price to emerge, as far as … regard to the question of the limits to monopoly pricing. The inelasticity of demand criterion of both authors left less room … for monopoly prices in their theoretical constructs of a hampered market economy than there really is. If one wants to …
Persistent link: https://www.econbiz.de/10013018419