Informational Structure and Effciency in Monopoly

Babu Nahata (), Sergey Kokovin and Evgeny Zhelobodko
Authors registered in the RePEc Author Service: Suresh Chandra Babu

General Economics and Teaching from EconWPA

Abstract: The paper focuses on efficiency under monopoly. Contrary to common wisdom, nine examples given in the paper show that a Pareto-efficient output in monopoly is possible under both linear and nonlinear pricing. Pareto efficiency can be achieved when consumers are homogeneous as well as heterogeneous. Since Pareo-efficiency is possible under different demand and cost conditions; different pricing strategies; and different degree of consumer heterogeneity, in general, monopoly per se is not the cause for ineficiency.

Keywords: Monopoly; Pareto Efficiency (search for similar items in EconPapers)
JEL-codes: D42 L10 L40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-tra
Date: 2003-07-03
Note: Type of Document - Acrobat PDF; prepared on IBM PC; to print on HP/PostScript/; pages: 25
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpgt:0307004

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