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monopoly profit in the finite-horizon problem under certain conditions; in fact, the monopolist does not have any reason to … as possible, which makes him sacrifice a part of his one-shot monopoly profit to attract traders to buy …
Persistent link: https://www.econbiz.de/10014201523
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 strategies when consumers have strategic delay incentives. We show when the...
Persistent link: https://www.econbiz.de/10014182987
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
We examine time-consistent intertemporal price-quality discrimination by a durable goods monopolist, when there are a continuum of buyer demand-intensities with respect to product quality, and it is profitable for the monopolist to trade with the marginal buyer-type (i.e., the gap case). We show...
Persistent link: https://www.econbiz.de/10014055030
We examine time-consistent intertemporal price and quality discrimination by a durable goods monopolist facing a continuum of rational buyers with heterogeneous preferences over product quality. We focus the analysis on the "gap" case, where it is profitable for the monopolist to trade with the...
Persistent link: https://www.econbiz.de/10014089204
When an improvable durable good (such as packaged software) saturates the market, the seller could be tempted to release new versions too frequently, hurting her profit. A novel contractual device, which we term as a Free New Version Rights warranty (Free NVR warranty), can help the seller...
Persistent link: https://www.econbiz.de/10014052060
One of the most famous and outstanding formalizations of the Coase Conjecture is that by Gul, Sonnenschein, and Wilson (1986). A peculiarity of their model — as well as all other examinations of the Coase Conjecture of which I am aware, including that by Coase himself — is that it assumes...
Persistent link: https://www.econbiz.de/10012941825
We examine the effect of a capacity constraint on the profits of a durable goods monopoly (DGM) in a two-period model …
Persistent link: https://www.econbiz.de/10013103937
A key to the Coase conjecture is the monopolist’s inability to commit to a price, which leads consumers to believe that a high current price will be followed by low future prices. This paper studies the robustness of the Coase conjecture with respect to these beliefs of consumers. In...
Persistent link: https://www.econbiz.de/10014212783
Persistent link: https://www.econbiz.de/10002494474