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The B.E. Journal of Theoretical Economics

Editor-in-Chief: Schipper, Burkhard

Ed. by Fong, Yuk-fai / Peeters, Ronald / Puzzello , Daniela / Rivas, Javier / Wenzelburger, Jan

2 Issues per year


IMPACT FACTOR 2016: 0.229
5-year IMPACT FACTOR: 0.271

CiteScore 2016: 0.30

SCImago Journal Rank (SJR) 2016: 0.398
Source Normalized Impact per Paper (SNIP) 2016: 0.232

Mathematical Citation Quotient (MCQ) 2016: 0.08

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1935-1704
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Monopoly Pricing over Time and the Timing of Investments

Ornella Tarola
Published Online: 2006-12-04 | DOI: https://doi.org/10.2202/1534-598X.1263

We consider a monopoly producing a good whose demand grows over time. Whatever the price policy which is adopted, the monopolist invests in order to meet the resulting demand growth. She can only invest in indivisible factory units. We identify the optimal price policy, and the ensuing optimal sequence of investment time points the monopoly selects through time. We show that this sequence satisfies the constant cycle property observed under capacity expansion for an exogenous increase in demand (Manne, 1961).

Keywords: planning investment; firm size; economic behavior

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Published Online: 2006-12-04


Citation Information: Topics in Theoretical Economics, Volume 6, Issue 1, Pages 1–17, ISSN (Online) 1534-598X, DOI: https://doi.org/10.2202/1534-598X.1263.

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[1]
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