A simple second degree price discrimination model involving nonlinear pricing of packets of a homogeneous product is shown to exhibit a welfare loss compared to the situation when nonlinear pricing is prohibited. The result holds for a Cournot oligopoly as well as monopoly. Further analysis...

A two-stage model of a homogeneous good oligopoly is constructed that is composed of a first stage determining (costless) information provision to consumers and then a second stage of price setting. A perfect equilibrium is found that is characterized by les s than full information and by...

Acquiring skill is costly and, in the presence of some degree of specificity, not totally transferable between firms. If it is impossible to sign complete contracts between a profit-maximizing firm and its workers, and/or the workers value future income less than do capitalists, labor-managed...