In this paper we examine the design of nonlinear prices by a multiproduct monopolist who faces customers with multidimensional but correlated types. We show that the monopoly can exploit the correlations between consumers’ types to design pricing mechanisms that fully extract the surplus from each consumer. Our main insight is that regardless of the dimensionality of the consumers types and the...

Abstract When a monopoly carrier provides multiple services(voice, data, video) through a single network, its’ profit-maximizing pricing policy usually induces resale. In many cases, resale can benefit consumers by providing them with a cheaper alternatives to a highpriced service. Nevertheless, in this paper, we demonstrate that there are situations in which the carrier can use resale to impro...

Food security and economic welfare strongly depend on agricultural production, the loss of this production can be a serious challenge for food security and economic welfare. Agricultural production is also influenced by environmental and climatic factors so that the variations of climatic parameters can trigger extensive fluctuations in agricultural production. This study classifies climate cha...

The empirical association between high hospital procedure volume and lower mortality rates has led to recommendations for the regionalization of complex surgical procedures. While regionalization may improve outcomes, it also reduces market competition, which has been found to lower prices and improve health care quality. This study estimates the potential net benefits of regionalizing the Whip...

We analyze the welfare consequences of a monopolist having additional information about consumers’tastes, beyond the prior distribution; the additional information can be used to charge different prices to different segments of the market, i.e., carry out "third degree price discrimination". We show that the segmentation and pricing induced by the additional information can achieve every combin...

This paper is concerned with the choice of metrics for social cost-benefit analysis and dynamic welfare comparisons. We show that behind the intertemporal welfare maximization in a utilitarian framework, there is always a money wealth measure that can serve as a substitute for the maximized utility wealth. Thus, under the non-arbitrage course of discount rates, the choice between utility and mo...

agricultural sector will be most affected by climate change due to its extensive interaction with the environment. and as a result of changing production conditions, community welfare is changed. this study attempted at understanding the welfare effects of changes in climate parameters on the wheat product. therefore, the yield functions were initially estimated. supply, demand and import funct...

Smartphones have revolutionized how individuals use consumer electronics and consume digital goods. I examine the extent to which smartphones have substituted other digital devices and expanded overall digital consumption, and I estimate the newly generated consumer surplus. To do so, I use newly available Korean panel survey data on individuals’ digital device ownership and detailed usage. Dur...