An Equilibrium Theory of Rationing.
Committing to prices that result in rationing may be more profitable than setting market-clearing prices if customers must make sunk investments to enter the market. Rationing is ex post inefficient, but it gives more surplus to lower-value customers who are the marginal consumers the monopolists wa...
| Main Authors: | , |
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| Format: | Journal article |
| Language: | English |
| Published: |
2000
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