Monopoly pricing
Article Abstract:
An analysis of monopoly pricing is presented. The analysis focuses on a general framework which is conditioned by an unknown population distribution of consumer characteristics, downward-sloping, multi-unit demand and increasing marginal cost. It is shown that the inclusion of reference point pricing boosts profit-maximizing allocation. In addition, nonlinear pricing approaches optimal monopolistic conditions when consumer numbers increase.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
Labour hoarding, price rigidity and the theory of imperfect competition under uncertain demand
Article Abstract:
An examination of monopolies under uncertainty reveals that a monopolistic firm may have an incentive to hoard some of its output unsold when demand is low because the marginal revenue becomes negative or lower than the product's selling cost. Moreover, in this economic condition, prices tend to be more rigid downwards than upwards. The model also provides explanations for labor hoarding in the absence of exogenous price rigidity.
Publication Name: Scandinavian Journal of Economics
Subject: Economics
ISSN: 0347-0520
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Uncertainty in interdependent economies with monopoly unions
Article Abstract:
A study was conducted to examine uncertainty in interdependent economies with monopoly unions. Results show that such economies exposed to symmetric shocks generate cooperative monetary stabilization policies which are not necessarily advantageous. However, such a situation raises the uncertainty of inflation. Labor unions would then hedge against such uncertainty, which leads to a reduction in employment.
Publication Name: Journal of Macroeconomics
Subject: Economics
ISSN: 0164-0704
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Background risk and the theory of the competitive firm under uncertainty. Spanning with American options
- Abstracts: Economic geography and the political economy of regionalization: the example of Western Europe. part 2 Public-good provision and political stability in Europe
- Abstracts: Spreading currency forwards: why and how? Inflationary finance and currency substitution in a public finance framework
- Abstracts: The buffer-stock theory of saving: some macroeconomic evidence. Macroeconomic implications of variation in the workweek of capital
- Abstracts: Two kinds of consumer switching costs. Transaction costs and the design of cropshare contracts. Politics and social costs: estimating the impact of collective action on hazardous waste facilities