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