With the increase in the price of oil, fuel surcharges have become a common and widely used practice in the transportation industry. Firms ask consumers to pay these surcharges in addition to the base price. Assuming that (i) fuel prices randomly fluctuate, (ii) fuel prices affect firms' costs...

This paper analyses the behavior of an individual who wants to maximize his utility function, but he is not able to evaluate it. There are many ways to choose a single alternative from a given set. We show that a unique utility maximizing procedure exists. Choices induced by this optimal...

This paper analyses the behavior of an individual who wants to maximize his utility function, but he is not able to evaluate it. There are many ways to choose a single alternative from a given set. We show that a unique utility maximizing procedure exists. Choices induced by this optimal...

A monopolist in public transport may oversupply frequency relative to the social optimum, as Van Reeven (2008) demonstrates with homogeneous consumers. This result generalizes for heterogeneous consumers who know the timetable. Whether a monopolist oversupplies or undersupplies frequency depends...