This paper studies second degree price discrimination for information goods. Prior research in the context of traditional goods (where marginal costs are convex as a function of product quality) shows that a firm can increase profits by offering vertically differentiated products to heterogeneous consumers. Some researchers have obtained the converse result for information products, assuming ne...

Marginal Utility Functions (MUFs) encapsulate the prosumer willingness to trade energy with other market agents. In large-scale distributed optimization schemes scalability and convergence are crucial, assumption of MUFs is common. this work, instead assuming shape coefficients those functions, a method proposed derive them based on prosumer's procurement problem. We formulate rolling-horizon p...

Based on numerical simulations there seems to be a kind of consensus in the optimal tax literature that the marginal tax rate should fall rather than rise with income. Retaining the same formal structure as in Mirrlees (1971) this paper shows that this consensus is sensitive to a choice of the assumed form of utility of consumption. For the utility function quadratic in consumption optimum tax ...

I explore the implications for asset prices and macroeconomic dynamics of shocks that improve real investment opportunities and thus affect the representative household’s marginal utility. These investment shocks generate differences in risk premia due to their heterogenous impact on firms: they benefit firms producing investment relative to firms producing consumption goods, and increase the v...

We consider users bidding in a series of multi-unit sealed-bid auctions, aiming at reserving the same amount of units of the resource auctioned, e.g. transmission slots in a wireless network. Each user attains from each successful allocation of resource units an instant marginal utility that depends on his history of resource allocation. The user’s bid at each auction equals this marginal utili...

Expected marginal seat revenue (EMSR) is a well-known method for airline seat inventory control airlines. However, this method employs a static model to study the dynamic reservation process, and does not take into account the risk tolerance of policy makers. Expected marginal seat utility (EMSU) replaces revenue by utility, which addresses the real situation of seat inventory control. However,...

We consider a portfolio-choice problem with one risky and one safe asset, where the utility function exhibits decreasing absolute risk aversion (DARA). We show that the indirect utility function of the portfolio-choice problem need not exhibit DARA. However, if the (optimal) marginal propensity to invest is positive for both assets, which is true when the utility function exhibits nondecreasing...

We study the Lov¶ asz extension b v for cooperative games v by using the marginal worth vectors and the dividends. First, we prove that the marginal worth vector aC with respect to an x-compatible ordering C satis ̄es, for supermodular games, b v(x) = min fhx; yi : y 2 Core(v)g = ­x; aC® : Next, we obtain the following characterization of the utility function of a market game: The utility functi...

Multivariate failure time data arise in various forms including recurrent event data when individuals are followed to observe the sequence of occurrences of a certain type of event; correlated failure time when an individual is followed for the occurrence of two or more types of events for which the individual is simultaneously at risk, or when distinct individuals have dependent event times; o...