Nonlinear Pricing under a Balanced-Budget Requirement: The n-Type Case

Research output: Working paper

Abstract

An economy consisting of n>=2 different types of consumers and one publicly owned natural monopoly is under consideration. The preferences of the consumers are assumed to be linear in money and the demand curves are assumed not to cross. We also suppose that the net utility from consumption is so high that we do not have to consider the individual rationality constraints. Given these assumptions, we completely characterize the set of budget-balanced and Pareto efficient nonlinear pricing schedules. This complete characterization has only been presented in the two-type case before

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Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Economics

Keywords

  • Nonlinear Pricing, Budget-Balance
Original languageEnglish
PublisherDepartment of Economics, Lund Universtiy
Publication statusPublished - 2004
Publication categoryResearch

Publication series

NameWorking Papers. Department of Economics, Lund University
No.25
ISSN (Print)1103-3010

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