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  28. Customers differ in demand for quality, because they differ in either (i) their preferences
  29. and/or (ii) their time cost per unit. The monopolist is constrained to supply the same quality
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  31. the monopolist (i) profit maximises; (ii) maximises social welfare subject to a profit
  32. constraint. The determinants of the skewing of quantity and quality are found under third
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  43. <meta content="Armstrong, M. (1996), “Multiproduct nonlinear pricing”, Econometrica, 64(1), pp. 51-75.
  44. Kihlstrom, R. E. and Levhari, D., (1977), “Quality, Regulation and Efficiency”, Kyklos, V30,
  45. pp.214-34.
  46. Levhari, D. and Peles, Y., (1973), “Market Structure, Quality and Durability”, Bell Journal
  47. of Economics, vol. 4, no. 1, Spr. 1973, pp. 235-48
  48. Mussa, M. and Rosen, S., (1978) “Monopoly and Product Quality”, Journal of Economic
  49. Theory, 301-17.
  50. Sappington, D., (2005), “Regulated Service Quality: A Survey”, Journal of Regulatory
  51. Economics, 27(2), pp. 123-54.
  52. Sheshinski, E., (1976), “Price, Quality and Quality Regulation in Monopoly
  53. Situations”, Economica, 43, pp.127-37.
  54. Sibly, H. (2004), “Ramsey Prices and Qualities” School of Economics, University of
  55. Tasmania Discussion Paper 2004-07.
  56. Sibley, D., and Srinagesh, P., (1997), “Multiproduct nonlinear pricing with multiple
  57. taste characteristics”, Rand Journal of Economics, 28(4), pp.684-707.
  58. Spence, A.M. (1975) “Monopoly, quality and regulation”, Bell Journal of Economics, pp.
  59. 417-429.
  60. Swan, P., (1970), “The durability of consumption goods”, American Economic Review,
  61. pp.884-94.
  62. Waldman, M., (2003), “Durable Goods Theory for Real World Markets”, Journal of
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  193.     <h1 class="ep_tm_pagetitle">The Determinants of the Quantity-Quality Balance in Monopoly</h1>
  194.     <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&#13;
  195. order to increase revenue when its customers treat quantity and quality as substitutes. This&#13;
  196. ‘skewing’ of quality depends on the characteristics of customer’s demand for quality.&#13;
  197. Customers differ in demand for quality, because they differ in either (i) their preferences&#13;
  198. and/or (ii) their time cost per unit. The monopolist is constrained to supply the same quality&#13;
  199. of good to all customers. The price and quality per unit are described under the assumption&#13;
  200. the monopolist (i) profit maximises; (ii) maximises social welfare subject to a profit&#13;
  201. constraint. The determinants of the skewing of quantity and quality are found under third&#13;
  202. 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 &gt; 340100 Economic Theory &gt; 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&amp;eprintid=2511">item control page</a></p>
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