Monopole, stratégies multiproduit et incitation à la recherche et développement
In the framework of a vertical differentiation model where consumers are continuously distributed with respect to their intensity of preference for quality and their income, we studdy the optimal strategy of a natural monopoly : how many qualities to produce ? Which qualities should be produced ? What prices have to be set to maximize the monopoly profit ? Considering costless production, the monopoly optimal strategies are such that the consumers with the same income buy the same quality. The monopoly never discriminates with respect to the intensities of preference for quality. If intensities of preference for quality are very low, the monopoly offers the highest quality and all the consumers buy. Else, the monopoly, offers an infinity of qualities. However, according to the model's parameters, we can have a discrimination with respect to the incomes such that the "poor" consumers don't buy. If the highest quality is not sufficiently high, the monopoly can't extract all the surplus of the "rich" consumers. This may be interpreted as an incitation to investment in research and development to improve the quality.
|Date of creation:||Jan 2005|
|Publication status:||Published in Cahiers de la Maison des Sciences Economiques 2005.25 - ISSN : 1624-0340. 2005|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00193974|
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References listed on IDEAS
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- Jaskold Gabszewicz, Jean & Shaked, Avner & Sutton, John & Thisse, Jacques-Francois, 1986.
"Segmenting the market: The monopolist's optimal product mix,"
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- GABSZEWICZ, Jean J. & SHAKED, Avner & SUTTON, John & THISSE, Jacques-François, "undated". "Segmenting the market: the monopolist's optimal product mix," CORE Discussion Papers RP 707, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Lahmandi-Ayed, Rim, 2000. "Natural Oligopolies: A Vertical Differentiation Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(4), pages 971-987, November.
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- Gabszewicz, Jean Jaskold, 1983. "Blue and Red Cars, or Blue Cars Only? A Note on Product Variety," Economica, London School of Economics and Political Science, vol. 50(198), pages 203-206, May.
- GABSZEWICZ, Jean J., "undated". "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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