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Nonlinear Pricing under a Balanced-Budget Requirement: The Two-Type Case

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Author Info
Andersson, Tommy () (Department of Economics, Lund University)

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Abstract

An economy consisting of two different types of consumers and one publicly owned natural monopoly is under consideration. The preferences of the consumers are assumed to be linear in money and the demand curves are assumed not to cross. We also suppose that the net utility from consumption is so high that we do not have to consider the individual rationality constraints. Given these assumptions, we completely characterize the set of budget-balanced and Pareto efficient nonlinear pricing schedules. This complete characterization has not been presented in the literature before.

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File URL: http://www.nek.lu.se/publications/workpap/Papers/WP04_21.pdf
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Publisher Info
Paper provided by Lund University, Department of Economics in its series Working Papers with number 2004:21.

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Length: 19 pages
Date of creation: 08 Oct 2004
Date of revision:
Handle: RePEc:hhs:lunewp:2004_021

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Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/
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Related research
Keywords: Nonlinear Pricing; Budget-Balance;

Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
H40 - Public Economics - - Publicly Provided Goods - - - General

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This page was last updated on 2009-12-2.


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