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Price discrimination with a resource constraint

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Author Info
Dana Jr., James D.
Yahalom, Tomer

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Abstract

Introducing an aggregate resource constraint into Mussa and Rosen's [Mussa, M., Rosen, S., 1978. Monopoly and product quality. Journal of Economic Theory 18 (2), 301-317] model of monopoly price discrimination induces an upwards distortion in product quality for high valuation consumers because the standard downward distortions in product quality for other consumers relax the resource constraint.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4RW4347-B/2/9842112ad9f79fed05b25405b4b8a869
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Publisher Info
Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 100 (2008)
Issue (Month): 3 (September)
Pages: 330-332
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Handle: RePEc:eee:ecolet:v:100:y:2008:i:3:p:330-332

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This page was last updated on 2009-12-3.

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