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entrants and to discourage entry. The market consists of customer segments with different valuations for product quality. We … demonstrate that a higher quality and a higher price of each product in the line convey the firm's advantage to potential … from the line. When product quality change is costly, the superior incumbent continues to select a higher quality and price …
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We consider a general model of monopoly price discrimination and characterize the conditions under which price discrimination is and is not profitable. We show that an important condition for profitable price discrimination is that the percentage change in surplus (i.e., consumers' total...
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This paper defines a unique type of product or service offering, termed , and analyzes a novel selling strategy, termed (PS). A probabilistic good is not a concrete product or service but an offer involving a probability of getting any one of a set of multiple distinct items. Under the...
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first discuss NAP's decision context and describe the model we proposed for developing NAP's optimal pricing policies for … for developing a new business model and how it used the insights derived from the study to set pricing policies and … monitor sales performance as a function of pricing. Finally, we perform validation of the model and the implemented policies …
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