Monopoly Pricing of Experience Goods∗
نویسندگان
چکیده
In this paper, we develop a model of experience goods pricing with indepedent private valuations. We show that the optimal paths of sales and prices take qualitatively different shapes for different products. If the buyers are initially pessimistic, then the prices are declining over time. If the buyers are initially optimistic, then the optimal prices are initially low followed by higher prices that extract goodwill from the buyers with a high willingness to pay.
منابع مشابه
Monopoly Profits in a Competitive Market for Undifferentiated Information Goods via Differentiated Pricing Schemes
It is known that the Bertrand outcome can be avoided when sellers are capacity constrained (Edgeworth 1897); when products are differentiated (d'Aspremont, Gabszewicz, and Thisse 1979); when the model is changed from one of short-run competition to long-run competition (Chamberlin 1929); when consumers are not perfectly informed or if it is costly for them to obtain information (Salop 1977). Ja...
متن کاملIncentive Compatible Pricing Strategies for Product Differentiation in Durable-Goods Markets
Product differentiation in durable-goods markets is often complicated by the fact that decision processes for the market participants are intrinsically dynamic. For example, consumers can employ a variety of consumption patterns with actions that vary in time, even for a single brand of goods. Transaction costs in selling used goods prompt consumers to think ahead in order to avoid adverse lock...
متن کاملPrice discrimination and the location choice of a durable goods monopoly
Delivered pricing by a spatial monopoly amounts to third degree price discrimination. Well known results in spatial economics show that the monopolist location choice is efficient under delivered pricing and generally inefficient under mill pricing. By contrast, the present paper shows that if the monopolist sells a durable good, the location is also inefficient under delivered pricing. 2002 ...
متن کاملCorrelated Equilibrium and the Pricing of Public Goods∗
Lindahl equilibrium is an application of price-taking behavior to achieve efficiency in the allocation of public goods. Such an equilibrium requires individuals to be strategically naive, i.e., Lindahl equilibrium is not incentive compatible. Correlated equilibrium is defined precisely to take account of strategic behavior and incentive compatibility. Using the duality theory of linear programm...
متن کاملمدل سازی شوک های مارک آپ با استفاده از مدل DSGE (مورد ایران)
This paper investigates the effects of markup shocks of domestic and export goods prices on macroeconomic variables by using a Dynamic Stochastic General Equilibrium (DSGE) model for Iran, in order to examine the effect of the growth of market power and monopoly in domestic and exporting markets from a macroeconomic viewpoint. To this end, the optimal pricing process of domestic, importing and ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2003