Extracting rents with forward contracts
Article Abstract:
Monopolists face low profit levels in markets where they are limited to a single market price. Producers in monopoly situations can get extra rent by selling in both forward and spot markets. Likewise, monopolists must price initial units higher than succeeding ones. They can apply this method of discriminatory pricing through forward contracts.These contracts allow the collection of higher rent from large buyers without displacing buyers with limited capacities.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 1992
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Durable goods monopoly and maintenance
Article Abstract:
Firms can affect consumer choice through product durability. Monopolists will encourage maintenance if production is too costly and when new goods have acceptable substitutes. Improved maintenance on the part of consumers will increase monopoly profits and demand for durable goods when substitutes maintain acceptable levels of durability. Monopoly firms will benefit from the situation because of the resulting market surplus.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 1992
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Honest certification and the threat of capture
Article Abstract:
A study on deriving conditions under which reputation enables certifiers to resist capture. These conditions have strong implications such as, honest certification requires high prices that may even exceed static monopoly price; honest certification exhibits economies of scale and constitutes a natural monopoly and price competition tends to monopolization.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 2005
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