Consumers' Tastes and the Optimal Price Gap

Anna Pettini

Economics Working Papers from European University Institute

Abstract: This paper uses a recent model on ticket pricing with the aim of studying how the population of potential buyers is partitioned when there are two ranked qualities on offer. Owr exercise incorporated specific distributions of tastes in the computation of the first order conditions for price selection. The role of the capacity constraints is also analysed and made endogenous.

Keywords: PRICING; CONSUMPTION (search for similar items in EconPapers)
JEL-codes: E60 E64 (search for similar items in EconPapers)
Pages: 36 pages
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:eui:euiwps:eco98/13

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