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Monopoly Pricing of Capacity Usage Under Asymmetric Information, Journal of Industrial Economics

Abstract

The design of monopoly pricing strategies is examined in a general framework with an unknown population distribution of consumer characteristics and downward-sloping, multi-unit consumer demand. In addition, the monopolist has increasing marginal cost. Three pricing strategies are shown to implement the profit-maximizing allocation: reference point pricing, multi-unit competitive bidding with variable outputs, and generalized priority service. The analysis of pricing also is extended to include random capacity.

Type

Article

Author(s)

Daniel Spulber

Date Published

1993

Citations

Spulber, Daniel. 1993. Monopoly Pricing of Capacity Usage Under Asymmetric Information. Journal of Industrial Economics. 41(3): 241-257.

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