This paper examines pricing policy, quality levels, consumer surplus and social welfare for the monopoly and non-monopoly case. It is shown that given certain realistic assumptions, the network industry under unregulated monopoly would yield more social welfare than in the case of several...

During the last decade the world has faced a tremendous development of information technology and telecommunication. This study investigates the impact of rumours (released on the web) on common stock returns. The findings indicate that the market responds positively to rumours. During the event...

The paper adds another dimension to the literature on bundling as a profit-maximizing strategy. We compare policies of joint consumption and segmentation of a profit maximizer. In the case of positive social influences between two population groups 'bundling' is preferred to segmentation, while...

A fixed price policy regardless of expiration date may result in unsold inventory and sales loss. Price reduction over time as the expiration date approaches motivates customers to purchase all items, including the ones that are left with only a short interval until their expiration. We conduct...

Maintaining moderate level of income inequality is required for the sake of sustainable economic growth. The question that needs to be addressed is how to accurately measure income inequality. We modify the traditional Gini coefficient by using purchasing power parity (PPP). Usually, the PPP...

The demand for security depends on several socioeconomic characteristics such as income, property, family size that may affect the demand for pure public security or private security. In the case of a homogeneous population, the identical demands lead to an equal use of the shared public good...

The paper analyses the options open to monopoly firms that sell software or internet service. We consider customers who have different reservation prices that are rectangularly distributed. The monopoly in general undertakes sustainable price discrimination between customers by producing two...

Ordering costs are usually considered as fixed costs. For the case of one seller and two identical buyers, we examine ordering charges that are proportional to the number of units ordered. We find that no extra profits will be generated, neither for the producer nor for the retailers. Thus,...

The paper analyzes the options open to monopoly firms that sell Internet services. We consider two groups of customers that are different in their reservation prices. The monopoly uses price discrimination between customers by producing two versions of the product at positive price for...