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Nonlinear Pricing under a Balanced-Budget Requirement: The n-Type Case

Publiceringsår: 2004
Språk: Engelska
Publikation/Tidskrift/Serie: Working Papers. Department of Economics, Lund University
Nummer: 25
Dokumenttyp: Working paper
Förlag: Department of Economics, Lund Universtiy


An economy consisting of n>=2 different types of consumers and one publicly owned natural monopoly is under consideration. The preferences of the consumers are assumed to be linear in money and the demand curves are assumed not to cross. We also suppose that the net utility from consumption is so high that we do not have to consider the individual rationality constraints. Given these assumptions, we completely characterize the set of budget-balanced and Pareto efficient nonlinear pricing schedules. This complete characterization has only been presented in the two-type case before


  • Economics
  • Nonlinear Pricing
  • Budget-Balance


  • ISSN: 1103-3010

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