Title of article
Mark-up pricing and bilateral monopoly
Author/Authors
Andreas Irmen، نويسنده , , Andreas ، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 1997
Pages
6
From page
179
To page
184
Abstract
If managers use cost-based percentage margins when pricing their goods, these margins should be determined as equilibrium choices. This paper studies the case of bilateral monopoly and compares the Nash equilibrium in percentage and in absolute mark-ups. We show that percentage mark-ups lead to lower equilibrium prices and higher downstream profits.
Keywords
Double marginalization , Bilateral monopoly , Mark-up pricing , Selling costs
Journal title
Economics Letters
Serial Year
1997
Journal title
Economics Letters
Record number
434269
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