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order to increase revenue when its customers treat quantity and quality as substitutes. This
‘skewing’ of quality depends on the characteristics of customer’s demand for quality.
Customers differ in demand for quality, because they differ in either (i) their preferences
and/or (ii) their time cost per unit. The monopolist is constrained to supply the same quality
of good to all customers. The price and quality per unit are described under the assumption
the monopolist (i) profit maximises; (ii) maximises social welfare subject to a profit
constraint. The determinants of the skewing of quantity and quality are found under third
degree price discrimination and uniform pricing." name="eprints.abstract" />
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<meta content="Armstrong, M. (1996), “Multiproduct nonlinear pricing”, Econometrica, 64(1), pp. 51-75.
Kihlstrom, R. E. and Levhari, D., (1977), “Quality, Regulation and Efficiency”, Kyklos, V30,
pp.214-34.
Levhari, D. and Peles, Y., (1973), “Market Structure, Quality and Durability”, Bell Journal
of Economics, vol. 4, no. 1, Spr. 1973, pp. 235-48
Mussa, M. and Rosen, S., (1978) “Monopoly and Product Quality”, Journal of Economic
Theory, 301-17.
Sappington, D., (2005), “Regulated Service Quality: A Survey”, Journal of Regulatory
Economics, 27(2), pp. 123-54.
Sheshinski, E., (1976), “Price, Quality and Quality Regulation in Monopoly
Situations”, Economica, 43, pp.127-37.
Sibly, H. (2004), “Ramsey Prices and Qualities” School of Economics, University of
Tasmania Discussion Paper 2004-07.
Sibley, D., and Srinagesh, P., (1997), “Multiproduct nonlinear pricing with multiple
taste characteristics”, Rand Journal of Economics, 28(4), pp.684-707.
Spence, A.M. (1975) “Monopoly, quality and regulation”, Bell Journal of Economics, pp.
417-429.
Swan, P., (1970), “The durability of consumption goods”, American Economic Review,
pp.884-94.
Waldman, M., (2003), “Durable Goods Theory for Real World Markets”, Journal of
Economic Perspectives, Winter 17(1), pp.131-154" name="eprints.referencetext" />
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order to increase revenue when its customers treat quantity and quality as substitutes. This
‘skewing’ of quality depends on the characteristics of customer’s demand for quality.
Customers differ in demand for quality, because they differ in either (i) their preferences
and/or (ii) their time cost per unit. The monopolist is constrained to supply the same quality
of good to all customers. The price and quality per unit are described under the assumption
the monopolist (i) profit maximises; (ii) maximises social welfare subject to a profit
constraint. The determinants of the skewing of quantity and quality are found under third
degree price discrimination and uniform pricing." name="DC.description" />
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<h1 class="ep_tm_pagetitle">The Determinants of the Quantity-Quality Balance in Monopoly</h1>
<p style="margin-bottom: 1em" class="not_ep_block"><span class="person_name">Sibly, Hugh</span> (2007) <xhtml:em>The Determinants of the Quantity-Quality Balance in Monopoly.</xhtml:em> Discussion Paper. School of Economics and Finance, University of Tasmania.</p><p style="margin-bottom: 1em" class="not_ep_block"></p><table style="margin-bottom: 1em" class="not_ep_block"><tr><td valign="top" style="text-align:center"><a onmouseover="EPJS_ShowPreview( event, 'doc_preview_3304' );" href="http://eprints.utas.edu.au/2511/1/DP2007_09_Sibly.pdf" onmouseout="EPJS_HidePreview( event, 'doc_preview_3304' );"><img alt="[img]" src="http://eprints.utas.edu.au/style/images/fileicons/application_pdf.png" class="ep_doc_icon" border="0" /></a><div class="ep_preview" id="doc_preview_3304"><table><tr><td><img alt="" src="http://eprints.utas.edu.au/2511/thumbnails/1/preview.png" class="ep_preview_image" border="0" /><div class="ep_preview_title">Preview</div></td></tr></table></div></td><td valign="top"><a href="http://eprints.utas.edu.au/2511/1/DP2007_09_Sibly.pdf"><span class="ep_document_citation">PDF</span></a> - Requires a PDF viewer<br />149Kb</td></tr></table><p style="margin-bottom: 1em" class="not_ep_block">Official URL: <a href="http://www.utas.edu.au/ecofin/home/dispap_by-year/2007.htm">http://www.utas.edu.au/ecofin/home/dispap_by-year/2007.htm</a></p><div class="not_ep_block"><h2>Abstract</h2><p style="padding-bottom: 16px; text-align: left; margin: 1em auto 0em auto">This paper describes how a monopolist manipulates the balance of quantity and quality in
order to increase revenue when its customers treat quantity and quality as substitutes. This
‘skewing’ of quality depends on the characteristics of customer’s demand for quality.
Customers differ in demand for quality, because they differ in either (i) their preferences
and/or (ii) their time cost per unit. The monopolist is constrained to supply the same quality
of good to all customers. The price and quality per unit are described under the assumption
the monopolist (i) profit maximises; (ii) maximises social welfare subject to a profit
constraint. The determinants of the skewing of quantity and quality are found under third
degree price discrimination and uniform pricing.</p></div><table style="margin-bottom: 1em" cellpadding="3" class="not_ep_block" border="0"><tr><th valign="top" class="ep_row">Item Type:</th><td valign="top" class="ep_row">Report (Discussion Paper)</td></tr><tr><th valign="top" class="ep_row">Keywords:</th><td valign="top" class="ep_row">REPEC</td></tr><tr><th valign="top" class="ep_row">Subjects:</th><td valign="top" class="ep_row"><a href="http://eprints.utas.edu.au/view/subjects/340101.html">340000 Economics > 340100 Economic Theory > 340101 Microeconomic Theory</a></td></tr><tr><th valign="top" class="ep_row">ID Code:</th><td valign="top" class="ep_row">2511</td></tr><tr><th valign="top" class="ep_row">Deposited By:</th><td valign="top" class="ep_row"><span class="ep_name_citation"><span class="person_name">Ms Tracy Kostiuk</span></span></td></tr><tr><th valign="top" class="ep_row">Deposited On:</th><td valign="top" class="ep_row">23 Nov 2007 09:17</td></tr><tr><th valign="top" class="ep_row">Last Modified:</th><td valign="top" class="ep_row">09 Jan 2008 02:30</td></tr><tr><th valign="top" class="ep_row">ePrint Statistics:</th><td valign="top" class="ep_row"><a target="ePrintStats" href="/es/index.php?action=show_detail_eprint;id=2511;">View statistics for this ePrint</a></td></tr></table><p align="right">Repository Staff Only: <a href="http://eprints.utas.edu.au/cgi/users/home?screen=EPrint::View&eprintid=2511">item control page</a></p>
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