IDEAS home Printed from https://ideas.repec.org/p/ctl/louvre/1999043.html
   My bibliography  Save this paper

Subscription as a price descrimination device

Author

Listed:
  • Jean J. GABSZEWICZ

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE))

  • Nathalie SONNAC

    (Ecare, Université Libre de Burxelles and LEI/CREST, Paris)

Abstract

We propose a model representing a newspaper producer supplying a product which can be acquired by the readers either every day per one unit at a time, or by subscription. The population of potential buyers is differentiated according to the frequency at which they want to read the newspaper. First we identify the optimal pricing policy, namely, the optimal price for issues sold per unit at the newsstand, as well as the optimal subscription fee. Then we show that it is always more profitable to supply the market with both possibilites - free sale purchase and subscription - than to concentrate the sales on either of these alternatives.

Suggested Citation

  • Jean J. GABSZEWICZ & Nathalie SONNAC, 1999. "Subscription as a price descrimination device," Discussion Papers (REL - Recherches Economiques de Louvain) 1999043, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  • Handle: RePEc:ctl:louvre:1999043
    as

    Download full text from publisher

    File URL: http://sites.uclouvain.be/econ/DP/REL/1999043.pdf
    Download Restriction: no

    Other versions of this item:

    Citations

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


    Cited by:

    1. Marcelo Resende & Eduardo Ferioli, 2014. "Magazine Subscription and Intertemporal Discounting: Some Further Evidence," CESifo Working Paper Series 5070, CESifo Group Munich.

    More about this item

    JEL classification:

    • L - Industrial Organization
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L8 - Industrial Organization - - Industry Studies: Services

    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:ctl:louvre:1999043. 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: (Sebastien SCHILLINGS). General contact details of provider: http://edirc.repec.org/data/iruclbe.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.