Another perverse effect of monopoly power

Jean Gabszewicz () and Xavier Yves Wauthy

No 2000062, CORE Discussion Papers from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: We show that the simple fact that a monopolist sells a good in units which are indivisible may well induce him to select a quality for his product which is not the highest one, even if no cost of any sort is attached to quality improvement.

Date: 2000-12-01
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