(2022-03-09) Zampetakis, Nikiforos; Ζαμπετάκης, Νικηφόρος; Athens University of Economics and Business, Department of Economics; Dioikitopoulos, Evangelos; Zacharias, Eleftherios; Antoniou, Fabio
I study dynamic pricing decisions of a storable good monopolist, who faces time-inconsistent consumers in a market where demand is growing over time. I derive the optimal pricing scheme of the monopolist under full and limited commitment, for general demand functions. Using a standard linear demand function, I show that the more time-impatient are the consumers, price under limited commitment comes closer to the price under full commitment.
