Nonlinear Pricing and the Utility Possibility Set
AbstractWe consider nonlinear pricing policies that are designed by a social welfare maximizer who operates under a non-negative profit requirement. In our two-type economy, we characterize the set of all feasible nonlinear pricing policies and the frontier of the utility possibility set. Our results provide a link between distortion in consumption and individual, as well as, social welfare.
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Bibliographic InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 2005:19.
Length: 8 pages
Date of creation: 04 Mar 2005
Date of revision:
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Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
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More information through EDIRC
Nonlinear Pricing; Budget-Balance; Welfare;
Find related papers by JEL classification:
- D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
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- Cremer, Helmuth & Gahvari, Firouz, 2002.
" Nonlinear Pricing, Redistribution, and Optimal Tax Policy,"
Journal of Public Economic Theory,
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- Bernard, Philippe & Wittwer, Jérôme, 2002. "Two-part pricing, public discriminating monopoly and redistribution : a note," Economics Papers from University Paris Dauphine 123456789/1694, Paris Dauphine University.
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- Alfons J. Weichenrieder, 2004. "Second degree price discrimination and natural monopoly," Bulletin of Economic Research, Wiley Blackwell, vol. 56(2), pages 189-200, 04.
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