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Uniform Pricing : Good or Bad News About Market Profitability?

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Author Info

  • Aguirre Perez, I

Abstract

This paper analyzes how an incumbent's price policy may signal information not only on demand level but also on demand composition. We show that uniform pricing may have advantages over third degree price discrimination when there are informational asymmetries for a monopolist facing threat of entry. A signalling game with two periods and two players is considered.

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Bibliographic Info

Paper provided by ASSET (Association of Southern European Economic Theorists) in its series ASSET - Instituto De Economia Publica with number 149.

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Length: 7 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:inecpu:149

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Postal: ASSET - Instituto De Economia Publica Facultad de Ciencias Economicas Y Empresariales . Avenida Lehendakari Aguirre, 83. 48015 Bilbao. Spain
Phone: + 33 - 4 91 14 07 70
Fax: + 33 - 4 91 90 02 27
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Web page: http://www.vcharite.univ-mrs.fr/ASSET/
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Related research

Keywords: INFORMATION ; PRICING ; ECONOMETRICS;

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Cited by:
  1. Iñaki Aguirre, 1999. "Information transmission and incentives not to price discriminate," Spanish Economic Review, Springer, vol. 1(3), pages 283-299.

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