Mark-Up Pricing and Bilateral Monopoly

Andreas Irmen

Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie

Abstract: It is an empirically established fact that managers use cost based percentage margins when they price their goods. As a consequence, percentage mark-ups should be determined as equilibrium choices. This paper incorporates this empirical observation into the analysis of competition among bilateral monopolists.

Keywords: bilateral monopoly; double marginalization; selling costs; mark-up pricing (search for similar items in EconPapers)
JEL-codes: L12 L42 (search for similar items in EconPapers)
Pages: 9 pages
Date: 1996-10
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Published in Economic Letters, vol.54, 1977, pp. 179-184

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Journal Article: Mark-up pricing and bilateral monopoly (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:lau:crdeep:9622

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