Facing asymmetric carbon abatement information of the energy service company (ESCO), the manufacturer not only suffers from economic losses, but also is unable to achieve the optimum emission reduction effect. For a manufacturer, designing incentive contracts plays an essential role in reducing...

This short paper analyzes the effect of heterogeneity of markets in terms of income on the exclusion of markets under uniform price by considering linear demand curves in all markets. We show that more markets (and consumers) are excluded the higher are the inter-market income differences, and...