Another perverse effect of monopoly power
We show that the simple fact that a monopolist sells a good in units which are indivisible may well induce him to select a quality for his product which is not the highest one, even if no cost of any sort is attached to quality improvement.
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- Jean Gabszewicz & Nathalie Sonnac & Xavier Wauthy, 2000.
"On Price Competition with Complementary Goods,"
2000-24, Centre de Recherche en Economie et Statistique.
- Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
- Gabszewicz, Jean Jaskold, 1983.
"Blue and Red Cars, or Blue Cars Only? A Note on Product Variety,"
London School of Economics and Political Science, vol. 50(198), pages 203-06, May.
- GABSZEWICZ, Jean J., . "Blue and red cars, or blue cars only? A note on product variety," CORE Discussion Papers RP 524, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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