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Textbooks present the three 'degrees' of price discrimination as a sequence of independent pricing methods and consequently provide inadequate insight as to when a firm might adopt a particular pricing strategy. The paper describes a taxonomy of the various mechanisms of price discrimination,...
Persistent link: https://www.econbiz.de/10009368917
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...
Persistent link: https://www.econbiz.de/10010905834
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...
Persistent link: https://www.econbiz.de/10010905842
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...
Persistent link: https://www.econbiz.de/10010835573
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 customers' demand for quality. Customers differ in demand...
Persistent link: https://www.econbiz.de/10008802989
An unusual feature of the management of wilderness and other natural areas is that price is rarely used to ration recreational access. This often leads to queuing for access. At the same time there is often a relatively poor level of infrastructure provided for recreation. This paper argues that...
Persistent link: https://www.econbiz.de/10008802990
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...
Persistent link: https://www.econbiz.de/10008802992
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...
Persistent link: https://www.econbiz.de/10010910167
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>
Persistent link: https://www.econbiz.de/10011034751
The quality distortion caused by a linear pricing monopolist is separated into two components; one measures the imbalance of quality and quantity (the skewed component) and the other measures the restriction of production to increase marginal willingness to pay (the unskewed component)....
Persistent link: https://www.econbiz.de/10010578018