Theoretical Analysis of the Relationship Between Monopoly's Optimal Tariffs and Consumer Utility

Bouchrika Ali, Chokri Terzi, Khalil Mhadhbi and Issaoui Fakhri
Additional contact information
Bouchrika Ali: Université de Gabes, ISG GABES, Gabes, Tunisia
Khalil Mhadhbi: Université de Gabes, ISG GABES, Gabes, Tunisia
Issaoui Fakhri: ESSECT (PS2D, FSEGT, Université de Tunis El Manar), Tunis, Tunisia

International Journal of Sustainable Economies Management (IJSEM), 2019, vol. 8, issue 1, 39-51

Abstract: The article is an extension to the pricing models proposed by Jean Tirol that model the consumption of an environmental good. However, the different consumption patterns of this good, which is characterized by a taste parameter (two tastes or a continuum of taste); always verifying an imbalance between the profit of the monopoly (mainly natural); and the utility function of the consumer agent. Taxation on the price, in relation to consumer preferences, can ensure the objectives of an efficient management of a good which has variations in its physical nature. Moreover, a coefficient of variation in its nature, based on a scale of measurement, can achieve the convergence between economic and social objectives. The underlying results show that the consumer surplus is proportional to the variation between the average and marginal utility. In addition, maximizing monopoly profit provides a reasonable price that ensures social equity measures between the different users.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://services.igi-global.com/resolvedoi/resolve. ... 018/IJSEM.2019010104 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:igg:jsem00:v:8:y:2019:i:1:p:39-51

Access Statistics for this article

International Journal of Sustainable Economies Management (IJSEM) is currently edited by Dorel Dusmanescu

More articles in International Journal of Sustainable Economies Management (IJSEM) from IGI Global
Bibliographic data for series maintained by Journal Editor ().