Sustainability In A Multiproduct And Multiple Agent Contestable Market
AbstractWe prove that a natural monopoly can set subsidy free pricing and sustainable pricing schedules in general economic environment. The setting is a multiproduct and multiple agent contestable market where demands are elastic and where rivals can enter the sub-markets composed by a set of the products line and a set of agents. Our results suggest that the existence results of the extant literature admit analogues even in an environment where rivals have enlarged possibilities to enter the market and where demands react to prices. The approach makes use of cooperative games to deduce the main results under conditions of fair sharing cost, threshold in the consumption and regularity of the profit function.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Bulletin of Economic Research.
Volume (Year): 61 (2009)
Issue (Month): 2 (04)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0307-3378
Other versions of this item:
- Iehlé, Vincent, 2009. "Sustainability in a Multiproduct and Multiple Agent Contestable Market," Economics Papers from University Paris Dauphine 123456789/84, Paris Dauphine University.
- Iehlé, Vincent, 2008. "Sustainability in a multiproduct and multiple agent contestable market," MPRA Paper 13013, University Library of Munich, Germany.
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bonnisseau, Jean-Marc & Iehlé, Vincent, 2007.
"Payoff-dependant Balancedness and Cores,"
Economics Papers from University Paris Dauphine
123456789/89, Paris Dauphine University.
- John C. Panzar & Robert D. Willig, 1977. "Free Entry and the Sustainability of Natural Monopoly," Bell Journal of Economics, The RAND Corporation, vol. 8(1), pages 1-22, Spring.
- Leonard J. Mirman & Yair Tauman & Israel Zang, 1985.
"Supportability, Sustainability, and Subsidy-Free Prices,"
RAND Journal of Economics,
The RAND Corporation, vol. 16(1), pages 114-126, Spring.
- Leonard J. Mirman, 1983. "Supportability, Sustainability and Subsidy Free Prices," Discussion Papers 563, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Faulhaber, Gerald R, 1975. "Cross-Subsidization: Pricing in Public Enterprises," American Economic Review, American Economic Association, vol. 65(5), pages 966-77, December.
- Baumol, William J & Bailey, Elizabeth E & Willig, Robert D, 1977. "Weak Invisible Hand Theorems on the Sustainability of Multiproduct Natural Monopoly," American Economic Review, American Economic Association, vol. 67(3), pages 350-65, June.
- Thijs ten Raa, 1984. "Resolution of Conjectures on the Sustainability of Natural Monopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(1), pages 135-141, Spring.
- Spulber, Daniel F., 1984. "Scale economies and existence of sustainable monopoly prices," Journal of Economic Theory, Elsevier, vol. 34(1), pages 149-163, October.
- ten Raa, Thijs, 1983. "Supportability and anonymous equity," Journal of Economic Theory, Elsevier, vol. 31(1), pages 176-181, October.
- Sharkey, William W. & Sibley, David S., 1993. "Optimal non-linear pricing with regulatory preference over customer type," Journal of Public Economics, Elsevier, vol. 50(2), pages 197-229, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.