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Monopoly and Quality

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Quality, profits and welfare. Higher quality is valued by consumersHow much of this extra surplus can the monopolist extract?If not all, monopoly may under-provide qualitySurprisingly, the opposite could also happen: over-provisionIllustrate basic ideas with examples.. Example 1. Quality too low

Monopoly and Quality

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1. Monopoly and Quality Welfare analysis

2. Quality, profits and welfare Higher quality is valued by consumers How much of this extra surplus can the monopolist extract? If not all, monopoly may under-provide quality Surprisingly, the opposite could also happen: over-provision Illustrate basic ideas with examples.

3. Example 1. Quality too low

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