Optimal selling procedures with fixed costs

Francesca Cornelli*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

26 Scopus citations


This paper studies the optimal selling procedures for a monopolist, when consumers valuations are unknown and there are fixed costs. The fixed costs introduce a positive externality among customers: each customer benefits from the presence of others who help cover the fixed costs. In this context it is optimal for the monopolist to make the probability of each individual being served contingent on the valuations of all the other consumers. The monopolist therefore sets a minimum price and then lets each customer contribute as much as he wishes. Journal of Economic Literature Classification Numbers: D44, D82, L31.

Original languageEnglish (US)
Pages (from-to)1-30
Number of pages30
JournalJournal of Economic Theory
Issue number1
StatePublished - Oct 1996

ASJC Scopus subject areas

  • Economics and Econometrics


Dive into the research topics of 'Optimal selling procedures with fixed costs'. Together they form a unique fingerprint.

Cite this