منابع مشابه
When Is Price Discrimination Profitable?
W consider a general model of monopoly price discrimination and characterize the conditions under which price discrimination is and is not profitable. We show that an important condition for profitable price discrimination is that the percentage change in surplus (i.e., consumers’ total willingness to pay, less the firm’s costs) associated with a product upgrade is increasing in consumers’ will...
متن کاملNetwork externalities, price discrimination and profitable piracy
Recent papers have argued that a monopoly firm might be able to maximize its profit by allowing some customers to steal its product. In particular, with network externalities, it is claimed that allowing piracy can be profitable because it increases the user base of the product and raises the willingness-to-pay of other customers. In this paper we analyze these claims when the producer can free...
متن کاملWhen Is Distorting Quality More Profitable
Earlier models of quality differentiation showed that the qualities, of differentiated products, were lowered below efficient levels. Recently, qualities were shown to be enhanced, not degraded, in some cases. This paper presents a complete characterization of quality choices under vertical product differentiation by incorporating and refining assumptions on consumer preferences and production ...
متن کاملIdentifying Price Discrimination When Product Menus Are Endogenous
The standard approach to identifying second degree price discrimination is based on examining correlations between product menus and prices. When product menus are endogenous, however, tests for price discrimination may be biased by the fact that unobservables affecting costs or demand may jointly determine product menus and prices leading one to falsely infer price discrimination. Attempts to ...
متن کاملLimiting Price Discrimination when Selling Products with Positive Network Externalities
Assume a seller wants to sell a digital product in a social network where a buyer’s valuation of the item has positive network externalities from her neighbors that already have the item. The goal of the seller is to maximize his revenue. Previous work on this problem [9] studies the case where clients are offered the item in sequence and have to pay personalized prices. This is highly infeasib...
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ژورنال
عنوان ژورنال: Management Science
سال: 2009
ISSN: 0025-1909,1526-5501
DOI: 10.1287/mnsc.1080.0979