probabilistic knowledge about demand. They argue that pricing in order to maximise the likelihood of survival explains anomalies … such as inelastic pricing, why the firm takes on more risk as gains become less likely, and asymmetric responses to demand … and cost changes. When demand is a linear demand, the monopolist's response to an increase in the marginal cost is similar …

probabilistic knowledge about demand. They argue that pricing in order to maximise the likelihood of survival explains anomalies … such as inelastic pricing, why the firm takes on more risk as gains become less likely, and asymmetric responses to demand … and cost changes. When demand is a linear demand, the monopolist's response to an increase in the marginal cost is similar …

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 …

, Bertrand competition and multi-stage R&D with an abandonment option, our model includes demand uncertainty, modelled as a … which lottery probabilities more divergent demand lotteries positively or negatively affect the decision to start R&D. Using … prevail a 10% increase in the degree of divergence of the demand lottery increases the likelihood of undertaking R&D by 1 …

and only if the modeled market is fully covered in equilibrium. A risk-averse monopoly tends to generate less aggregate … net consumer surplus than a risk-neutral monopoly in partial-cover equilibrium but consumer welfare is indifferent when …

affects the optimal price/price markup or optimal quantity. A monopoly example is used to show that seemingly strong … uncertainty types can lead to quite special results. Monopoly examples of the newsboy problem type are further used to show that …

at whether the textbook monopoly model is the appropriate framework to analyze digital markets. It finds that observed … average tendencies of FANGs expose the limitations of the textbook monopoly model (I), proposes an alternative theory of …

We study rationing as a tool of the monopolist's pricing strategy when demand is uncertain. Three pricing strategies …