Monopoly Pricing

Daniel F. Spulber*

*Corresponding author for this work

Research output: Contribution to journalReview article

9 Scopus citations

Abstract

Monopoly pricing is examined in a general framework with an unknown population distribution of consumer characteristics, downward-sloping, multi-unit consumer demand, and increasing marginal cost. Reference point pricing is introduced and is shown to implement the profit-maximizing allocation. Nonlinear pricing is shown to be approximately optimal for the monopolist as the number of consumers gets large. Journal of Economic Literature Classification Numbers: D42, D82, L1.

Original languageEnglish (US)
Pages (from-to)222-234
Number of pages13
JournalJournal of Economic Theory
Volume59
Issue number1
DOIs
StatePublished - Feb 1 1993

ASJC Scopus subject areas

  • Economics and Econometrics

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