Logo Logo

Monopoly Pricing, Journal of Economic Theory

Abstract

Monopoly pricing is examined in a general framework with an unknown population distribution of consumer characteristics, downward-sloping, multi-unit consumer demand, and increasing marginal cost. Reference point pricing is introduced and is shown to implement the profit-maximizing allocation. Nonlinear pricing is shown to be approximately optimal for the monopolist as the number of consumers gets large.

Type

Article

Author(s)

Daniel Spulber

Date Published

1993

Citations

Spulber, Daniel. 1993. Monopoly Pricing. Journal of Economic Theory. 59(1): 222-234.

KELLOGG INSIGHT

Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more

COURSE CATALOG

Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.
LEARN MORE

DEGREE PROGRAMS

Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more