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Nonuniform Prices with Income Effects

Author

Listed:
  • Masahiro Watabe

Abstract

The paper examines a reverse of the revelation principle when consumers’ preferences have income effects. I propose a new method for constructing a price schedule from a direct revelation mechanism. Any incentive compatible direct revelation mechanism can be implementable by a single price schedule.

Suggested Citation

  • Masahiro Watabe, 2015. "Nonuniform Prices with Income Effects," Discussion Papers 33, Meisei University, School of Economics.
    • Handle: RePEc:mei:wpaper:33
    as

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    File URL: https://keizai.meisei-u.ac.jp/upload/admin/discussion_paper/2019/03/DP33.pdf
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    References listed on IDEAS

    as
    1. Rochet, J. C., 1985. "The taxation principle and multi-time Hamilton-Jacobi equations," Journal of Mathematical Economics, Elsevier, vol. 14(2), pages 113-128, April.
    2. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
    3. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
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    Citations

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    Cited by:

    1. Masahiro Watabe, 2015. "Duality in Nonlinear Pricing with Applications to Block Tariffs," Discussion Papers 32, Meisei University, School of Economics.

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    More about this item

    Keywords

    nonuniform prices; income effects; taxation principle; bunching;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law

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