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

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n economy consisting of n>=2 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 only been presented in the two-type case before

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  • Andersson, Tommy, 2004. "Nonlinear Pricing under a Balanced-Budget Requirement: The n-Type Case," Working Papers 2004:25, Lund University, Department of Economics.
    • Handle: RePEc:hhs:lunewp:2004_025
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    Keywords

    Nonlinear Pricing; Budget-Balance;

    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; Mechanism Design
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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