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.
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| Length: | 12 pages |
| Date of creation: | 31 Dec 2007 |
| Date of revision: | |
| Handle: | RePEc:gra:wpaper:07/06 |
| Contact details of provider: | Postal: Campus Universitario de Cartuja Phone: (34)958248346 Fax: (34)958249995 Web page: http://www.ugr.es/local/teoriahe Email: More information through EDIRC
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References listed on IDEAS
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Working Papers
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- Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
- GABSZEWICZ, Jean J. & WAUTHY, Xavier Y., .
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CORE Discussion Papers RP
1667, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jean J. Gabszewicz & Xavier Y. Wauthy, 2003. "The option of joint purchase in vertically differentiated markets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 22(4), pages 817-829, November.
- 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).
- Motta, Massimo, 1993. "Endogenous Quality Choice: Price vs. Quantity Competition," Journal of Industrial Economics, Wiley Blackwell, vol. 41(2), pages 113-31, June.
- Nancy L. Stokey, 1979. "Intertemporal Price Discrimination," The Quarterly Journal of Economics, Oxford University Press, vol. 93(3), pages 355-371.
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