Tuesday, December 17, 2019

Beating Coase at Monopoly

By: Lluis BruDaniel CardonaJozef Sakovics
Abstract: We study how a buyer unable to price discriminate should satisfy his demand in the presence of diseconomies of scale in production. Defying the Coase Conjecture, we show that auctioning contracts for lots (block sourcing) followed by setting a price to realize (part of) the residual gains from trade a ways leads to higher buyer surplus than simply setting a price.
URL: http://d.repec.org/n?u=RePEc:edn:esedps:291&r=com


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