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explanation to this puzzle by providing a simple framework to analyze a monopoly seller's optimal marketing strategy in terms of …
Persistent link: https://www.econbiz.de/10014048278
the monopoly and from the welfare points of view. It is shown that in the two-type consumer case when the monopoly is …
Persistent link: https://www.econbiz.de/10014058904
This paper uses tools provided by lattice theory to describe the second-degree price discrimination problem faced by a …
Persistent link: https://www.econbiz.de/10014103016
This pedagogical note explains how the same basic principle can be applied to explain the profit-maximizing behavior of a monopolist under both linear and nonlinear pricing by introducing an average price function. It is shown that optimal conditions under nonlinear pricing are similar to that...
Persistent link: https://www.econbiz.de/10014028199
result that there is only one monopoly profit and thus there is no gain from bundling. This folk theorem relies on some … consumption levels, then it is generally the case that a firm can extend a monopoly from A into a competitive B market. While it … firm offers to scale back its monopoly price in return for getting a price premium in a second market. The reduction in …
Persistent link: https://www.econbiz.de/10014028966
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...
Persistent link: https://www.econbiz.de/10013297199
discrimination, the platform can condition its fee on sellers' type. In a model with linear demand on each side, we show that price …
Persistent link: https://www.econbiz.de/10014343799
show that the Chicago School Theory of a single monopoly surplus that justifies tying, bundling, and loyalty …
Persistent link: https://www.econbiz.de/10014187801
addition, the paper finds that it is feasible in the monopoly optimum that the bundle for low-demand agents is more expensive … extent of platform access for high-demand agents is strictly reduced below the benchmark level with complete information. In … than the one for high-demand agents if the extent of interaction with agents from the opposite market side is assumed to be …
Persistent link: https://www.econbiz.de/10010487752
uncertainty in demand. The monopolist is uninformed because it does not know one of the parameters defining the distribution of … the random demand. Observing prices reveals this information slowly. We first show how to incorporate Bayesian learning …. Learning affects the monopolist's behavior. The higher the expected mean of the demand shock given its beliefs, the higher the …
Persistent link: https://www.econbiz.de/10014068523