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Nonlinear Pricing and the Utility Possibility Set

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  • Andersson, Tommy

    ()
    (Department of Economics, Lund University)

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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File URL: http://project.nek.lu.se/publications/workpap/Papers/WP05_19.pdf
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Bibliographic Info

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

Contact details of provider:
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/en
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Keywords: Nonlinear Pricing; Budget-Balance; Welfare;

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  1. 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.
  2. Cremer, H. & Gahvari, F., 1996. "Nonlinear Pricing, Redistribution and Optimal Tax Policy," Papers 95.393, Toulouse - GREMAQ.
  3. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
  4. Alfons J. Weichenrieder, 2004. "Second degree price discrimination and natural monopoly," Bulletin of Economic Research, Wiley Blackwell, vol. 56(2), pages 189-200, 04.
  5. 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.
  6. Eric Maskin & John Riley, 1984. "Monopoly with Incomplete Information," RAND Journal of Economics, The RAND Corporation, vol. 15(2), pages 171-196, Summer.
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