Özener, Başak AltanAtahan, Pelin2022-11-172022-11-1720191300-9583http://hdl.handle.net/10679/7979https://doi.org/10.21773/boun.33.2.1A monopolist service provider's quality and price decisions are analyzed in a vertically differentiated market where customers demand different quantities of a service. We find that depending on the relative sizes of the market segments and the difference in the valuations of different customers, the service provider may find it optimal to either offer a non-discriminating service or a discriminating service serving only high-valuation customers. The service provider never finds it optimal to serve the market segments that have low-valuation for quality when the discrimination strategy is optimal. © 2019 Bogazici Universitesi. All rights reserved.engopenAccessarticle3328310510.21773/boun.33.2.1Vertical differentiationService pricingAsymmetric information JEL Classification: D82L11Dikey farklılaştırmaHizmet fiyatlandırmaAsimetrik bilgi JEL Sınıflaması: D822-s2.0-85090361740