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-quality menus to segment the market. We show that, contrary to the Coase conjecture for the homogeneous durable good monopoly …
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A durable good monopolist faces a continuum of heterogeneous customers who make purchase decisions by comparing present and expected price-quality offers. The monopolist designs a sequence of price-quality menus to segment the market. We consider the Markov Perfect Equilibrium (MPE) of a game...
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explicitly accounts for monopoly power in manipulating quality choices. The example provided illustrates the potential for …
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