We investigate a vertically integrated theater's contract and screen allocation decisions in a movie industry characterized by demand uncertainty, price uniformity, and revenue-sharing contracts. Based on a simple theoretical model that describes the decisions of theaters and movie distributors,...

A durable-goods monopolist may use quality degradation as a commitment not to lower price in the future. The introduction of damaged goods expedites low-valuation consumers' future demands, and helps the firm to mitigate the Coasian time-consistency problem. In such a case, damaged goods are...

This paper considers competition in a telecommunications industry, where heterogeneous consumers have private information about their preferences for telephone service and firms are allowed to use nonlinear tariffs. Networks, which directly compete for customers, are interconnected and pay...

This paper considers a functional quality degradation of software with twoway features (such as reading and writing in word-processors). A software monopolist differentiates products by introducing a functionally down-graded version (e.g. the read-only version) by eliminating some functions of...

A durable-goods monopolist may use quality degradation as a commitment not to lower price in the future. The introduction of damaged goods expedites lowvaluation consumers? future demands, and helps the firm to mitigate the Coasian time-consistency problem. In such a case, damaged goods are more...