Advanced Search
MyIDEAS: Login

Monopoly Pricing When Customers Queue

Contents:

Author Info

  • Hong Chen

    (University of British Columbia)

  • Murray Frank

    (University of British Columbia and Hong Kong University of Science and Technology)

Abstract

It takes time to process purchases and as a result a queue of customers may form. The pricing and service rate decissions of a monopolist who must take this into account are characterized. We find that an increase in the average number of customers arriving in the market either has no effect on the monopoly price, or else causes the monopolist to reduce the price in the short run. In the long run the monopolist will increase the service rate and raise the price. When customer preferences are linear the equilibrium is socially efficient. When preferences are not linear equilibrium will not normally be socially efficient.

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://128.118.178.162/eps/io/papers/9504/9504001.pdf
Download Restriction: no

File URL: http://128.118.178.162/eps/io/papers/9504/9504001.tex
Download Restriction: no

File URL: http://128.118.178.162/eps/io/papers/9504/9504001.ps.gz
Download Restriction: no

Bibliographic Info

Paper provided by EconWPA in its series Industrial Organization with number 9504001.

as in new window
Length:
Date of creation: 29 Apr 1995
Date of revision:
Handle: RePEc:wpa:wuwpio:9504001

Note: 298333 bytes postscript file created with Latex. 34 page including the titlepage. Keywords: Queue, Monopoly, Customer Information, Service Rate, Social Welfare
Contact details of provider:
Web page: http://128.118.178.162

Related research

Keywords:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

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:wpa:wuwpio:9504001. 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: (EconWPA).

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.