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...

The net accumulation of human capital through the cultivation of cognitive and non-cognitive skills and knowledge, is an important source of change in professional and personal people's life. Past work experience has a direct effect on wage levels and their growth; thus, it influences the...

We consider optimal consumption and portfolio investment problems of an investor who is interested in maximizing his utilities from consumption and terminal wealth subject to a random inflation in the consumption basket price over time. We consider two cases: (i) when the investor observes the...

In many instances the consumer faces choice settings where the alternatives are discrete. Examples include choice between variants of differentiated products, urban transportation modes, residential locations, types of education, etc. So far, a Slutsky equation for discrete choice models has not...