IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v27y1994i1p183-97.html
   My bibliography  Save this article

Shortages, Segmentation, and Self-Selection

Author

Listed:
  • D. G. Ferguson

Abstract

This paper considers the rationality and implications of using shortages as a self-selection device. Shortages lead to uncertain access and enable sellers to offer ensured access, either to the good or to a preferred variety of the good, at a higher price or as part of a bundle. It is shown that such activities allow firms to span nonconcavities in their revenue function. Firms respond to changes in demand and costs through changes in quantity and/or the premium for ensured access but not through changes in the base price.

Suggested Citation

  • D. G. Ferguson, 1994. "Shortages, Segmentation, and Self-Selection," Canadian Journal of Economics, Canadian Economics Association, vol. 27(1), pages 183-197, February.
    • Handle: RePEc:cje:issued:v:27:y:1994:i:1:p:183-97
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0008-4085%28199402%2927%3A1%3C183%3ASSAS%3E2.0.CO%3B2-V
    Download Restriction: only available to JSTOR subscribers
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Alexei Parahonyak & Nick Vikander, 2024. "Strategic Use of Product Delays to Shape Word-of-Mouth Communication," Economics Series Working Papers 1032, University of Oxford, Department of Economics.
    2. Parakhonyak, Alexei & Vikander, Nick, 2023. "Information design through scarcity and social learning," Journal of Economic Theory, Elsevier, vol. 207(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cje:issued:v:27:y:1994:i:1:p:183-97. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Werner Antweiler (email available below). General contact details of provider: https://edirc.repec.org/data/ceaaaea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.