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Mark-up pricing and bilateral monopoly

  • Irmen, Andreas

It is an empirically established fact that managers use cost based percentage margins when they price their goods. As a consequence, percentage mark-ups should be determined as equilibrium choices. This paper incorporates this empirical observation into the analysis of competition among bilateral monopolists.

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File URL: http://www.sciencedirect.com/science/article/B6V84-3SWYC7J-H/2/260730e1c2a45e5508f0cb88d016bf91
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 54 (1997)
Issue (Month): 2 (February)
Pages: 179-184

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Handle: RePEc:eee:ecolet:v:54:y:1997:i:2:p:179-184
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Thomas von Ungern-Sternberg, 1999. "Percentage Retail Mark-Ups," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 135(IV), pages 539-557, December.
  2. Waterson, Michael, 1980. "Price-Cost Margins and Successive Market Power," The Quarterly Journal of Economics, MIT Press, vol. 94(1), pages 135-50, February.
  3. Grant, Simon & Quiggin, John, 1994. "Nash equilibrium with mark-up-pricing oligopolists," Economics Letters, Elsevier, vol. 45(2), pages 245-251, June.
  4. Young, Allan Richard, 1991. "Vertical Structure and Nash Equilibrium: A Note," Journal of Industrial Economics, Wiley Blackwell, vol. 39(6), pages 717-22, December.
  5. Hugo Sonnenschein, 1968. "The Dual of Duopoly Is Complementary Monopoly: or, Two of Cournot's Theories Are One," Journal of Political Economy, University of Chicago Press, vol. 76, pages 316.
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