Business, Management and Accounting
4 years ago

Monopolist's price commitment boosts social welfare in changing demand markets.

RePEc: Research Papers in Economics
Non-Stationary Demand in a Durable Goods Monopoly
Usategui Díaz de Otalora, José María

Paper Summary

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The article discusses how a company selling a product that people need at different times can benefit society more if the company can set prices in advance. When the company can commit to future prices, it can lead to a better outcome for everyone compared to when it cannot. This means that having rules for how these companies operate can make a big difference in how well things work for everyone.