• Corpus ID: 237091540

Dynamic Monopoly Pricing With Multiple Varieties: Trading Up

@inproceedings{Buehler2021DynamicMP,
  title={Dynamic Monopoly Pricing With Multiple Varieties: Trading Up},
  author={Stefan Buehler and Nicolas Eschenbaum},
  year={2021}
}
This paper studies dynamic monopoly pricing for a broad class of Coasian and Non-Coasian settings. We show that the driving force behind pricing dynamics is the seller’s incentive to trade up consumers to higher-valued consumption options. In Coasian settings, consumers can be traded up from the static optimum, and pricing dynamics arise until all trading-up opportunities are exhausted. In Non-Coasian settings, consumers cannot be traded up from the static optimum, and no pricing dynamics arise… 

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