A model is provided whereby a monopolist firm chooses to price its product at zero. This outcome is shown to be driven by the assumption of `free disposal' alongside selection markets (where prices impact on a firm's costs). Free disposal creates a mass point of consumers whose utility from the...

We investigate deterministic stochastic choice in the standard consumer framework. We present a model of statistical consumer theory where the individual maximizes their utility with respect to a distribution of bundles that is constrained by a statistic of the distribution (e.g. mean...