Economics, Econometrics and Finance
4 years ago

Monopolist's Rationing Strategy Boosts Profits, Impacts Consumer Purchasing Behavior.

SSRN Electronic Journal
Rationing in a Durable Goods Monopoly
Vincenzo Denicolò, Paolo G. Garella

Paper Summary

In a monopoly selling durable goods, rationing can help the seller make more money by preventing consumers from waiting for lower prices. This happens because rationing reduces the seller's incentive to lower prices in the future, leading to higher profits overall.

Related papers

Business, Management and Accounting
4 years ago

Monopolist's strategic product variety choice boosts social welfare, study finds.

Two-Sided Markets
Technology Diffusion
2 views
Economics, Econometrics and Finance
4 years ago

Monopolist's Rapid Product Changes Serve Whole Market, Low-Quality Goods Sold Below Costs

Monetary Models
Two-Sided Markets
Macroeconomic Trends
2 views
Business, Management and Accounting
5 years ago

Monopolists creating buying frenzies to maximize profits and consumer surplus.

Two-Sided Markets
Technology Diffusion
Economic Analysis