A Critique on the Theory of Linear Price Monopoly
AbstractWe show that the absence of friction between consumers is not sufficient for linear pricing by a monopolist. On the contrary, it is shown that this situation allows the monopolist to achieve perfect discrimination.
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Bibliographic InfoPaper provided by Nir Dagan in its series Economic theory and game theory with number 016.
Length: 4 pages
Date of creation: 15 Jan 1998
Date of revision: 25 Sep 1998
Contact details of provider:
Postal: Nir Dagan, Dept. of Economics and Management, Tel-Hai Academic College, Upper Galilee, Israel.
Web page: http://www.nirdagan.com/research/
Monopoly; linear pricing; friction; price discrimination;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D40 - Microeconomics - - Market Structure and Pricing - - - General
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