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dc.contributor.authorMcAfee, R. Prestonen
dc.date.accessioned2009-01-28T15:06:01Z-
dc.date.available2009-01-28T15:06:01Z-
dc.date.issued2007-
dc.identifier.citation|aEconomics: The Open-Access, Open-Assessment E-Journal|c1864-6042|v1|h2007-1|nKiel Institute for the World Economy (IfW)|lKiel|y2007|p1-19en
dc.identifier.pidoi:10.5018/economics-ejournal.ja.2007-1en
dc.identifier.urihttp://hdl.handle.net/10419/17999-
dc.description.abstractCompanies with market power occasionally engage in intentional quality reduction of a portion of their output as a means of offering two qualities of goods for the purpose of price discrimination, even absent a cost saving. This paper provides an exact characterization in terms of marginal revenues of when such a strategy is profitable, which, remarkably, does not depend on the distribution of customer valuations, but only on the value of the damaged product relative to the undamaged product. In particular, when the damaged product provides a constant proportion of the value of the full product, selling a damaged good is unprofitable. One quality reduction produces higher profits than another if the former has higher marginal revenue than the latter.en
dc.language.isoengen
dc.publisher|aKiel Institute for the World Economy (IfW) |cKielen
dc.subject.jelD43en
dc.subject.jelL15en
dc.subject.ddc330en
dc.titlePricing Damaged Goods-
dc.typeArticleen
dc.identifier.ppn530574411en
dc.rights.licensehttp://creativecommons.org/licenses/by-nc/2.0/de/deed.enen
dc.identifier.repecRePEc:zbw:ifweej:5580en
econstor.citation.journaltitleEconomics: The Open-Access, Open-Assessment E-Journalen
econstor.citation.issn1864-6042en
econstor.citation.volume1en
econstor.citation.issue2007-1en
econstor.citation.publisherKiel Institute for the World Economy (IfW)en
econstor.citation.publisherplaceKielen
econstor.citation.year2007en
econstor.citation.startpage1en
econstor.citation.endpage19en

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