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- Title
EVOLUTIONARY CONSUMERS IMPLY MONOPOLIES EXIT.
- Authors
Hummel, Patrick; McAfee, R. Preston
- Abstract
We address the question of how a monopolist should price when facing evolutionary consumers who gradually move in the direction of following their optimal strategy but may make temporary suboptimal choices. We show that under a broad generalization of the most commonly used model of evolution, the monopolist will set a path of prices such that all consumers eventually stop purchasing the monopolist's product.
- Subjects
CONSUMER behavior; MONOPOLISTIC competition; ARTIFICIAL intelligence; CLIMATE change; MATHEMATICAL models
- Publication
International Economic Review, 2018, Vol 59, Issue 4, p1733
- ISSN
0020-6598
- Publication type
Article
- DOI
10.1111/iere.12318