haku: @indexterm PRICE CUTTING / yhteensä: 42
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| Tekijä: | Butz, D. A. |
| Otsikko: | Durable-good monopoly and best-price provisions |
| Lehti: | American Economic Review
1990 : DEC, VOL. 80:5, p. 1062-1076 |
| Asiasana: | MONOPOLY CONSUMER DURABLES PRICE CUTTING OUTPUT PROFIT COMMODITY MARKETS |
| Kieli: | eng |
| Tiivistelmä: | A monopoly seller of an infinitely durable good cannot sell output at the static monopoly level. Once the initial quantity has been sold, more profits can be made by cutting price and increasing output. If this happens, each previous buyer is entitled to a refund. Best-price provisions guarantee buyers that the price is the lowest available. A durable-good monopolist who offers certain forms of these provisions can construct a consistent plan yielding the same profits as rental agreements and contracts with explicit quantity commitments. The provisions require special circumstances to be practical, but they are simple and effective. Three applications are shown: international commodity agreements, electric generators and financial claims. |
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