A combined monopoly and optimal packaging

Jacob Paroush, Yoram C. Peles

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

This paper specifies the conditions under which a profit maximizing monopoly will market a package of two different commodities even when the demands for and the cost of production of, each commodity are entirely independent of the other. Packaging is, here, a useful way of implicitly discriminating by price, especially when explicit price discrimination is not possible. Some of the welfare applications are discussed.

Original languageEnglish
Pages (from-to)373-383
Number of pages11
JournalEuropean Economic Review
Volume15
Issue number3
DOIs
StatePublished - Mar 1981

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