Versioning Goods and Joint Purchase: Substitution and Complementarity Strategies
We analyze the monopolist’s decision about how to design different versions of a good, i.e. whether to make them substitutes or complements, when consumers can buy them simultaneously. In this context, we find that versioning goods as substitutes or complements may be optimal for the monopolist, and the final result depends on the degree of concavity and convexity of the cost function.
|Date of creation:||31 Dec 2007|
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- GABSZEWICZ, Jean J. & WAUTHY, Xavier Y., 2001.
"The option of joint purchase in vertically differentiated markets,"
CORE Discussion Papers
2001013, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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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.
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