search query: @author Kim, J. S. / total: 6
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| Author: | Kim, J. S. |
| Title: | Optimal price-quality schedules and sustainability. |
| Journal: | Journal of Industrial Economics
1987 : DEC, VOL. 36:2, p. 231-244 |
| Index terms: | QUALITY CONTROL PRICE POLICY SCHEDULING |
| Language: | eng |
| Abstract: | Using a rather sophisticated model a general solution is derived for optimal price-quality scheduling under imperfect information. The optimal solutions maximize the weighted sum of consumer surplus and profit. They are general in the sense that include the first best, the second best, and the profit maximizing solutions depending on the weights in the objective function. The assumption is that the fixed setup cost is related to the range of qualities produced by a firm. A nonlinear version of the occasional incompatibility between the second best pricing and sustainability is demonstrated. The conditions for sustainability are examined. |
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