Nonlinear Pricing and the Utility Possibility Set
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.
|Date of creation:||04 Mar 2005|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden|
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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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