Abstract
This chapter covers …
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cognitive, technological, and regulative prerequisites for the existence of monopolies.
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how firms can use their monopoly to develop basic and sophisticated pricing strategies.
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the role of price discrimination in markets with imperfect information about the willingness to pay of the customers, and why the findings help to better understand pricing behavior in, for example, airline, software and hardware markets.
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the role of price discrimination between market segments and why the findings help to understand the debate about international price differences.
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how the informational demand for optimal pricing strategies is related to the optimal organization of firms.
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the economic-policy consequences of the above pricing models.
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Further Reading
Allen, W. B. (2009). Managerial Economics Theory, Applications, and Cases. Norton.
Frank, R. H. (2008). Microeconomics and Behavior. McGraw-Hill.
Haisley, E., Mostafa, R., & Loewenstein, G. (2008). Subjective Relative Income and Lottery Ticket Purchases. Journal of Behavioral Decision Making, 21, 283–295.
Pindyck, R., & Rubinfeld, D. (2001). Microeconomics. Prentice-Hall.
Tirole, J. (1988). The Theory of Industrial Organization. MIT Press.
Varian, H. R. (1992). Microeconomic Analysis. Norton.
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Kolmar, M. (2017). Firm Behavior in Monopolistic Markets. In: Principles of Microeconomics. Springer Texts in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-57589-6_10
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DOI: https://doi.org/10.1007/978-3-319-57589-6_10
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