Monopoly pricing with dual-capacity constraints

IF 1.2 4区 管理学 Q3 ECONOMICS Journal of Economics & Management Strategy Pub Date : 2023-09-01 DOI:10.1111/jems.12556
Robert Somogyi
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Abstract

This paper studies the price-setting behavior of a monopoly facing two capacity constraints: one on the number of its consumers, and the other on the amount of products it can sell. The characterization of the firm's optimal pricing and optimal customer mix as a function of its two capacities reveals a rich structure. In contrast to the results under one-dimensional capacity constraints with constant marginal cost of production, a firm may optimally respond to an exogenous reduction in one of its capacities by decreasing one of its prices. Moreover, neglecting the existence of the second capacity constraint can reverse some policy interventions' effects on consumer welfare. In particular, easing a regulatory restriction on one of the constraints may harm the average consumer.

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双容量约束下的垄断定价
本文研究了垄断企业面临两种能力约束时的定价行为:一种是消费者数量约束,另一种是可销售产品数量约束。公司的最优定价和最优客户组合作为其两种能力的函数的特征揭示了一个丰富的结构。与边际生产成本不变的一维产能约束下的结果相反,企业可能通过降低其中一种产能的价格来对其外生产能的减少做出最佳反应。此外,忽视第二产能约束的存在可能会逆转一些政策干预对消费者福利的影响。特别是,放松对其中一项约束的监管限制可能会损害普通消费者。
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来源期刊
CiteScore
3.20
自引率
5.30%
发文量
43
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