The properties of product line prices

B-Tier
Journal: International Journal of Industrial Organization
Year: 2015
Volume: 43
Issue: C
Pages: 182-188

Authors (2)

Johnson, Justin P. (not in RePEc) Myatt, David P. (London Business School (LBS))

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 study multi-product Cournot suppliers (a monopoly is a special case) who offer menus of differentiated qualities. Under conditions that include linear and constant-elasticity demand specifications, the equilibrium price for each quality is equal to its price in a single-product Cournot market. A corollary is this: a monopolist who naively ignores the substitutability of her products, by choosing the standalone monopoly price for each quality, successfully implements the optimal discriminatory scheme. Under other reasonable specifications, the equilibrium prices are close to the single-product prices. We also evaluate the impact of minimum quality standards.

Technical Details

RePEc Handle
repec:eee:indorg:v:43:y:2015:i:c:p:182-188
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-26