Nonlinear Pricing and the Utility Possibility Set

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Nonlinear Pricing and the Utility Possibility Set

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

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Tommy Andersson

Abstract

We 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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Paper provided by Lund University, Department of Economics in its series Working Papers with number 2005:19.

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Length: 8 pages
Date of creation: 04 Mar 2005
Date of revision:
Handle: RePEc:hhs:lunewp:2005_019

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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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Find related papers by JEL classification:
D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information

This paper has been announced in the following NEP Reports:

NEP-ALL-2005-03-13 (All new papers)
NEP-MIC-2005-03-13 (Microeconomics)

References listed on IDEAS
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.:

Eric Maskin & John Riley, 1984. "Monopoly with Incomplete Information," RAND Journal of Economics, The RAND Corporation, vol. 15(2), pages 171-196, Summer. [Downloadable!] (restricted)
Alfons J. Weichenrieder, 2004. "Second degree price discrimination and natural monopoly," Bulletin of Economic Research, Blackwell Publishing, vol. 56(2), pages 189-200, 04. [Downloadable!] (restricted)
Cremer, Helmuth & Gahvari, Firouz, 2002. " Nonlinear Pricing, Redistribution, and Optimal Tax Policy," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(2), pages 139-61. [Downloadable!] (restricted)
Other versions:
- Cremer, H. & Gahvari, F., 1996. "Nonlinear Pricing, Redistribution and Optimal Tax Policy," Papers 95.393, Toulouse - GREMAQ.
Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August. [Downloadable!] (restricted)

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This page was last updated on 2009-11-23.

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