Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Multiproduct Monopolist Under Vertical Differentiations: an Inductive Approach

Contents:

Author Info

  • Luca Lambertini

Abstract

An inductive procedure is adopted to evaluate the behaviour of a multiproduct profit seeking monopolist vis à vis that of a social planner, in a model where there is a continuum of consumers characterized by different marginal willingness to pay for the quality. When the market is completely covered, the monopolist undersupplies all qualities as long as their number is finite. When quality becomes continuous, the richest consumer is provided with the socially optimal quality. Under the alternative assumption of partial market coverage, the monopolist supplies the same qualities as the social planner, restricting though total output. Finally, it turns out that, for a given number of varieties, under partial market coverage the monopolist can make at least as good as under full market coverage, so that she prefers to distort quantity rather than quality.

(This abstract was borrowed from another version of this item.)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www2.dse.unibo.it/wp/226.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number 226.

as in new window
Length:
Date of creation: Sep 1995
Date of revision:
Handle: RePEc:bol:bodewp:226

Contact details of provider:
Postal: Piazza Scaravilli, 2, and Strada Maggiore, 45, 40125 Bologna
Phone: +39 051 209 8019 and 2600
Fax: +39 051 209 8040 and 2664
Web page: http://www.dse.unibo.it
More information through EDIRC

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, Elsevier, vol. 18(2), pages 301-317, August.
  2. Cremer, Helmuth & Thisse, Jacques-François, 1993. "Commodity Taxation in a Differentiated Oligopoly," IDEI Working Papers, Institut d'Économie Industrielle (IDEI), Toulouse 25, Institut d'Économie Industrielle (IDEI), Toulouse.
  3. Spence, Michael, 1976. "Product Differentiation and Welfare," American Economic Review, American Economic Association, American Economic Association, vol. 66(2), pages 407-14, May.
  4. Sheshinski, Eytan, 1976. "Price, Quality and Quantity Regulation in Monopoly Situations," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 43(17), pages 127-37, May.
  5. Besanko, David & Donnenfeld, Shabtai & White, Lawrence J, 1987. "Monopoly and Quality Distortion: Effects and Remedies," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 102(4), pages 743-67, November.
  6. Bonanno, Giacomo, 1987. "Location Choice, Product Proliferation and Entry Deterrence," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 54(1), pages 37-45, January.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Luca Lambertini & Piero Tedeschi, 2007. "Would You Like To Enter First With A Low-Quality Good?," Bulletin of Economic Research, Wiley Blackwell, vol. 59(3), pages 269-282, 07.
  2. Bonroy, Olivier, 2003. "Le standard de qualité minimale est-il un instrument socialement optimal? Une revue de littérature," Cahiers de recherche, GREEN 0304, GREEN.
  3. Lambertini, Luca & Orsini, Raimondello, 2000. "Process and product innovation in a vertically differentiated monopoly," Economics Letters, Elsevier, Elsevier, vol. 68(3), pages 333-337, September.
  4. Luca LAMBERTINI & Raimondello ORSINI, 2005. "Positional effects, product quality and regulation in duopoly," Discussion Papers (REL - Recherches Economiques de Louvain) 2005041, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  5. L. Lambertini & R. Orsini, 1998. "Differentiation With A Positional Good," Working Papers 306, Dipartimento Scienze Economiche, Universita' di Bologna.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bol:bodewp:226. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luca Miselli).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.