MONOPOLY AND PRODUCT QUALITY
MONOPOLY AND PRODUCT QUALITY
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DOI:
10.1016/0022-0531(78)90085-6
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发表时间:
1978-01-01
影响因子:
1.6
通讯作者:
ROSEN, S
中科院分区:
文献类型:
--
作者:
MUSSA, M;ROSEN, S
This paper considers a class of monopoly pricing problems involving what a businessman might call a product line, a quality-differentiated spectrum of goods of the same generic type. While the goods are similar, they are not perfect substitutes because all customers do not place the valuations on all attributes of the goods. The seller knows the ge distribution of tastes and demands in the market, but cannot dist~~ g~ isb among buyers prior to an actual sale and cannot prevent resale in other markets. Therefore, the monopolist cannot engage in the usual sort of price d~ scr~ rni~ at~ on. Instead, the goods are offered in an impersonal market on a take-it-or-leave-it basis and the seller exploits the possibilities for a pricing policy (a price-quality schedule) to allocate customers along the quality spectrum by a process of self-selection. The optimal policy ““smokes~ ut’~ consumer preferences, separates markets, and assigns different customer types to different varieties of goods, thereby permitting partial discrimination among consumers of varying intensities of demand. Assuming that buyers purchase one unit of the good and that there are constant costs of producing a given variety and increasing marginal costs of higher quality items, it is established that the monopolist almost always reduces the quality sold to any customer compared with what would be purchased under competition. Generally speaking this is done by increasing the slope of the price-quality gradient offered relative to marginal cost. Furthermore, the monopolist frequently prices customers with the least intensities of demand out of the market, while at the same time selling broader range of qualities than would be offered in competitively organize markets, Finally, demand conditions may be such that it does not pay the seller to separate all markets completely, but rather to bunch. customers of diEererat tastes onto the same product. This maneuver is a~ c~ rn~~ is~ ed by imparting corners in the price-quality schedule, so that customers with 301