Work

Monopolist nonlinear pricing in a seller's market

Year: 2026

Type: preprint

Abstract: In this paper, we study the Rochet-Choné model of monopolist pricing in the seller's market limit. We introduce a monotonicity formula which yields an asymptotic description of solutions, and prove that the proportion of consumers priced out of the market vanishes as overall consumer demand increases, providing a counterpoint to Armstrong's desirability of exclusion.

Source: arXiv (Cornell University)

DOI: 10.48550/arxiv.2609.24011

Author: O'Brien, Lucas D.

Language: English

Topic: Consumer Market Behavior and Pricing

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

Funder: Massachusetts Institute of Technology

OpenAlex ID: W7214015797

Cites:

Cited by:

Related to: 10