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Brand Name and Private Label Price Setting by a Monopoly Store

Jeffrey Perloff, Jeffrey LaFrance () and Hayley Chouinard ()

No 18-12, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: A monopoly that sells to brand-name loyal customers and to price-sensitive customers must decide whether to carry both name-brand and a private-label products and how much to charge. The monopoly may charge either more or less for the brand name if it carries a private label, and the price differential between the products is sensitive to cost and taste parameters.

Keywords: brand name; private label; monopoly; pricing (search for similar items in EconPapers)
JEL-codes: L2 D3 D4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-com, nep-ind and nep-mkt
Date: 2012-09
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