Price discrimination with a resource constraint

Introducing an aggregate resource constraint into Mussa and Rosen's [Mussa, M., Rosen, S., 1978. Monopoly and product quality. Journal of Economic Theory 18 (2), 301-317] model of monopoly price discrimination induces an upwards distortion in product quality for high valuation consumers because the standard downward distortions in product quality for other consumers relax the resource constraint.

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Year of publication:	2008
Authors:	Dana Jr., James D. ; Yahalom, Tomer
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 100.2008, 3, p. 330-332
Publisher:	Elsevier

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005275818