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Stable pricing in monopoly and equilibrium-core of cost games

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    We prove the existence of subsidy free and sustainable pricing schedule in multiproduct contestable markets. We allow firms to discriminate the local markets that are composed by a set of the products line and a set of agents. Results are obtained under an assumption of fair sharing cost and under boundary condition of demand functions. The pricing problem is modelled in terms of equilibrium-core allocations of parameterized cost games.

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    File URL: ftp://mse.univ-paris1.fr/pub/mse/cahiers2005/B05023.pdf
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    Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number b05023.

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    Length: 18 pages
    Date of creation: Oct 2004
    Date of revision:
    Handle: RePEc:mse:wpsorb:b05023
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    1. Bonnisseau, Jean-Marc & Iehlé, Vincent, 2007. "Payoff-dependant Balancedness and Cores," Economics Papers from University Paris Dauphine 123456789/89, Paris Dauphine University.
    2. repec:ner:tilbur:urn:nbn:nl:ui:12-382067 is not listed on IDEAS
    3. Faulhaber, Gerald R, 1975. "Cross-Subsidization: Pricing in Public Enterprises," American Economic Review, American Economic Association, vol. 65(5), pages 966-77, December.
    4. Baumol, William J & Bailey, Elizabeth E & Willig, Robert D, 1977. "Weak Invisible Hand Theorems on the Sustainability of Multiproduct Natural Monopoly," American Economic Review, American Economic Association, vol. 67(3), pages 350-65, June.
    5. William W. Sharkey, 1981. "Existence of Sustainable Prices for Natural Monopoly Outputs," Bell Journal of Economics, The RAND Corporation, vol. 12(1), pages 144-154, Spring.
    6. ten Raa, Thijs, 1983. "Supportability and anonymous equity," Journal of Economic Theory, Elsevier, vol. 31(1), pages 176-181, October.
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