Price advertising and coupons in a monopoly model
Article Abstract:
The advertising and pricing behavior of monopolists is examined in the context of a situation where prices are discovered through costly price searches. In this situation, monopolists are shown to select between two choices: conducting large-scale advertising and having no advertising at all. These choices are demonstrated to provide the most optimal returns for monopolists in markets characterized by downwardly rigid prices. It is also shown that flexibility can be attained in such markets via couponing as this permits discrimination between identical customers.
Publication Name: Journal of Industrial Economics
Subject: Economics
ISSN: 0022-1821
Year: 1996
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Technological progress and the Chamberlin effect
Article Abstract:
Product quality is found to deteriorate when new technology makes increased quantity possible.
Publication Name: Journal of Industrial Economics
Subject: Economics
ISSN: 0022-1821
Year: 1999
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