Another perverse effect of monopoly power

Jean Gabszewicz and Xavier Wauthy

No 2000062, LIDAM Discussion Papers CORE 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
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