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| Author: | Spulber, D. |
| Title: | Monopoly pricing of capacity usage under asymmetric information |
| Journal: | Journal of Industrial Economics
1993 : SEP, VOL. 41:3, p. 241-257 |
| Index terms: | MONOPOLY PRICING CAPACITY ASYMMETRIC INFORMATION |
| Language: | eng |
| Abstract: | The design of monopoly pricing strategies is examined in a general framework with an unknown population distribution of consumer characteristics and downward-sloping, multi-unit consumer demand. In addition, the monopolist has increasing marginal cost. Three pricing strategies are shown to implement the profit-maximizing allocation: reference point pricing, multi-unit competitive bidding with variable outputs, and generalized priority service. The analysis of pricing also is extended to include random capacity. |
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