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Nonlinear Pricing and the Utility Possibility Set

Tommy Andersson

No 2005:19, Working Papers from Lund University, Department of Economics

Abstract: We consider nonlinear pricing policies that are designed by a social welfare maximizer who operates under a non-negative profit requirement. In our two-type economy, we characterize the set of all feasible nonlinear pricing policies and the frontier of the utility possibility set. Our results provide a link between distortion in consumption and individual, as well as, social welfare.

Keywords: Nonlinear Pricing; Budget-Balance; Welfare (search for similar items in EconPapers)
JEL-codes: D42 D82 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2005-03-04
New Economics Papers: this item is included in nep-mic
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