产业组织4_-_Product_Variety_and_Quality_Under_Monopoly.pptVIP

Too Much of Product Variety? (3) Monopolist offers too much product variety. Profit maximizer, rather than surplus maximizer. If Monopolist could price discriminate, tendency of over-supply will be less strong. Horizontal Differentiation - Price Discrimination (1) Uniform delivered pricing (at V). Absorb transportation costs. Horizontal Differentiation - Price Discrimination (2) Socially Efficient Degree of Product Variety. Flexible Manufacturing Systems “production units capable of producing a range of discrete products with a minimum of manual intervention”, (U.S. Office of Technolog