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Consumers' Tastes and the Optimal Price Gap

Author

Listed:
  • Pettini, A.

Abstract

This paper uses a recent model on ticket pricing with the aim of studying how the population of potential buyers is partitioned when there are two ranked qualities on offer. Owr exercise incorporated specific distributions of tastes in the computation of the first order conditions for price selection. The role of the capacity constraints is also analysed and made endogenous.

Suggested Citation

  • Pettini, A., 1998. "Consumers' Tastes and the Optimal Price Gap," Economics Working Papers eco98/13, European University Institute.
  • Handle: RePEc:eui:euiwps:eco98/13
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    Keywords

    PRICING ; CONSUMPTION;

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy

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