Article ID Journal Published Year Pages File Type
5097124 Journal of Econometrics 2007 10 Pages PDF
Abstract
This paper considers price determination by monopolistic sellers who know the distribution of valuations among the potential buyers. We derive a novel condition under which the optimal price set by the monopolist is unique. In many settings, this condition is easy to interpret, and it is valid for a very wide range of distributions of valuations. The results carry over to the optimal minimum price in independent private value auctions. In addition, they can be fruitfully applied in the analysis of quantity discount price policies.
Related Topics
Physical Sciences and Engineering Mathematics Statistics and Probability
Authors
,