Regulating a Monopolist with unknown costs and unknown quality capacity
نویسنده
چکیده
We study the regulation of a firm with unknown demand and cost information. In contrast to previous studies, we assume demand is influenced by a quality choice, and the firm has private information about its quality capacity in addition to its cost. Under natural conditions, asymmetric information about the quality capacity is irrelevant. The optimal pricing is weakly above marginal costs for all types and no type is
منابع مشابه
Regulating a monopolist with limited funds
We consider the problem of regulating a monopolist with unknown costs when the regulator has limited funds. The optimal regulatory mechanism satisfies four properties. The first property is bunching at the top, that is the more efficient types produce the same quantity irrespective of their costs. The second property is separability of less efficient types. The third property is full bunching o...
متن کاملRegulating a Monopolist with Unknown Costs
Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive o...
متن کاملDetermining the Sample size for Estimation of the CCC-R Control Chart Parameters Based on Estimation Costs
In today's highly competitive industrial environment due to fast technology development, quality practitioners will to detect out-of-control situations and take actions whenever is necessary as soon as possible. Accordingly, new statistical procedures have been enhanced incessantly both to handle high yield processes along with looking for methods of minimizing all quality cost. CCC-r chart, th...
متن کاملDynamic Inventory Planning with Unknown Costs and Stochastic Demand
Generally ordering policies are done by two methods, including fix order quantity (FOQ) and fix order period (FOP). These methods are static and either the quantity of ordering or the procedure of ordering is fixing in throughout time horizon. In real environments, demand is varying in any period and may be considered as uncertainty. When demand is variable in any period, the traditional and st...
متن کاملRevenue Management for Products with Unknown Quality and Observable Price and Sales History
This paper studies pricing strategies of a monopolist when customers are strategic and infer the product quality from historical sales and price paths. This behavior may be expected when selling a new, innovative product whose quality is unknown and customers have some, but, imperfect information about the product quality. The monopolist can sell a finite amount of inventory during a finite hor...
متن کامل