Optimal Two-part Pricing under Cost Unce
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Kit Pong Wong
📂
Article
📅
2011
🏛
John Wiley and Sons
🌐
English
⚖ 126 KB
This paper examines the optimal two‐part pricing under cost uncertainty. We consider a risk‐averse monopolistic firm that is subject to a cost shock to its constant marginal cost of production. The firm uses two‐part pricing to sell its output to a continuum of heterogeneous consumers. We show that