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This paper examines pricing policy, quality levels, consumer surplus and social welfare for the monopoly and non-monopoly case. It is shown that given certain realistic assumptions, the network industry under unregulated monopoly would yield more social welfare than in the case of several...
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The paper analyses the options open to monopoly firms that sell software or internet service. We consider customers who have different reservation prices that are rectangularly distributed. The monopoly in general undertakes sustainable price discrimination between customers by producing two...
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In this paper we show how the use of a restricted number of coupons in the presence of different types of customers is an effective means of implementing a price discriminating policy. Hence, firm profits can be increased even when traditional price discrimination is forbidden.
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This paper discusses different forms of transfer from a group of rich individuals to a group of poor individuals. This transfer is based on the philanthropic motive of the donor, who is not indifferent to the use of his contribution. In particular, the poor individual's vector of consumption is...
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