This paper presents a model in which a firm conducts non-linear pricing though bundling. However some agents, ‘unbundlers’, find it profitable to unbundle output. Unbundlers have an increasing marginal cost of unbundling, which limits the extent of unbundling. Customers with identical demand...

This paper considers a monopolist that conducts vertical product differentiation. Previous analyses that assume customers have unit demand or firms conduct non-linear pricing. In contrast to these studies customers purchase multiple units at a linear price. Customers differ in their income and...

This paper proposes a market-based reform that would introduce competition into the provision of urban water. This proposal calls for a decoupling of infrastructure control and ownership of water whereby the property rights to water would be transferred to private hands. The proposal involves...

type="main" xml:id="ajar12032-abs-0001" <p>Increasing block tariffs (IBTs) are currently used to price urban water in many Australian mainland capitals and a great many cities worldwide. This paper provides a systematic analysis of the impact of the adoption of IBTs to price urban water under the...</p>

Quality is defined as being skewed when the marginal rate of substitution (MRS) between quantity and quality differs from the marginal rate of transformation (MRT). This definition is used to assess the balance of quality and quantity in each variety of good produced by a monopolist using...

This paper describes how a monopolist manipulates the balance of quantity and quality in order to increase revenue when its customers treat quantity and quality as substitutes. This 'skewing' of quality depends on the characteristics of customer's demand for quality. Customers differ in demand...