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Optimal pricing strategy for durable-goods monopoly q
| Content Provider | Semantic Scholar |
|---|---|
| Author | Wang, Ruqu |
| Copyright Year | 2015 |
| Abstract | In this paper, we reconsider the pro"tability of a durable-good monopoly when the seller's discount rate may be di!erent from the buyers'. In an in"nite-horizon continuous-time full-commitment model, the monopoly can achieve more than the static monopoly pro"t if and only if the seller is more patient than the buyers. Under this condition, the price function is strictly decreasing over time. These results remain valid in models with buyers arriving sequentially, where the seller may have only one unit to sell or can produce more at constant marginal cost. ( 2001 Elsevier Science B.V. All rights reserved. JEL classixcation: D42 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://isiarticles.com/bundles/Article/pre/pdf/22560.pdf |
| Alternate Webpage(s) | http://directory.umm.ac.id/Data%20Elmu/jurnal/J-a/Journal%20Of%20Economic%20Dynamics%20And%20Control/Vol25.Issue5.Apr2001/1349.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
