A Critique on the Theory of Linear Price Monopoly

Nir Dagan ()

Economic theory and game theory from Nir Dagan

Abstract: We show that the absence of friction between consumers is not sufficient for linear pricing by a monopolist. On the contrary, it is shown that this situation allows the monopolist to achieve perfect discrimination.

Keywords: Monopoly; linear pricing; friction; price discrimination (search for similar items in EconPapers)
JEL-codes: C72 D40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic
Date: 1998-01-15, Revised 1998-09-25

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Persistent link: http://EconPapers.repec.org/RePEc:nid:ndagan:016

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