EVOLUTIONARY CONSUMERS IMPLY MONOPOLIES EXIT

B-Tier
Journal: International Economic Review
Year: 2018
Volume: 59
Issue: 4
Pages: 1733-1746

Authors (2)

Patrick Hummel (not in RePEc) R. Preston McAfee (Google Research)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We address the question of how a monopolist should price when facing evolutionary consumers who gradually move in the direction of following their optimal strategy but may make temporary suboptimal choices. We show that under a broad generalization of the most commonly used model of evolution, the monopolist will set a path of prices such that all consumers eventually stop purchasing the monopolist's product.

Technical Details

RePEc Handle
repec:wly:iecrev:v:59:y:2018:i:4:p:1733-1746
Journal Field
General
Author Count
2
Added to Database
2026-01-26