NDLI: Tepper School of Business 10-7-2008 Nonlinear Pricing with Resale

Please wait, while we are loading the content...

Tepper School of Business 10-7-2008 Nonlinear Pricing with Resale

Content Provider	Semantic Scholar
Author	Hafalir, Isa Emin
Copyright Year	2015
Abstract	We consider the problem of a monopolist choosing an optimal nonlinear pricing scheme facing two consumers who can resell some or all of the goods to each other in a secondary market. We suppose that the valuations of the consumers are drawn independently from a continuous distribution. We nd conditions for the optimum direct mechanism and show that the monopolist can be better o¤ or worse o¤ as compared to the without resale case, depending on the specics of the cost function of the monopolist and the utility functions of the consumers. Keywords: Nonlinear pricing, Resale, Mechanism Design, Secondary Markets JEL Classication Numbers: D42, D82 1 Introduction Consider the adverse selection problem of a transaction between a seller (the monopolist,) and buyers (consumers,) where the seller does not perfectly know how much the buyers are willing to pay for the goods. Suppose also that the seller sets the terms of the contract i.e. a menu of quantities and prices. The problem of one principal facing one agent who has private information about his type was rst analyzed by Mirrlees (1971). One monopolist and a consumer problem was then analyzed by Mussa and Rosen (1978), and Maskin and Riley (1984), among others. The reader is referred to Bolton and Dewatripont (2005), La¤ont and Martimort (2002) and Wilson (1993) for a detailed discussion of economics of adverse selection. All previous work on monopolists problem of optimal nonlinear pricing focused either on a single consumer or on multiple consumers who cannot resell the goods to one another, except for Calzolari and Pavan (2006). Calzolari and Pavan (2006) PRELIMINARY AND INCOMPLETE, Comments are very welcome. yDepartment of Economics, Penn State University, University Park, PA 16802, USA. E-mail: isaemin@psu.edu
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://repository.cmu.edu/cgi/viewcontent.cgi?article=1139&context=tepper
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article

Central Library (ISO-9001:2015 Certified)
Indian Institute of Technology Kharagpur
Kharagpur, West Bengal, India | PIN - 721302

See location in the Map
03222 282435
Mail: support@ndl.gov.in

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in