Non-uniform Pricing, Output and Welfare under Monopoly

S-Tier
Journal: Review of Economic Studies
Year: 1983
Volume: 50
Issue: 1
Pages: 37-56

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A monopolist may earn greater profits by setting a nonuniform price schedule (one in which the price varies with the quantity purchased) than by charging a uniform price. In general, the profit maximizing non-uniform price schedule and the welfare maximizing schedule do not coincide. Thus, there may be scope for improving market performance through regulation. The paper considers a regulator who has limited information and authority. The issues addressed centre around the question of whether the level of total market output can be taken as a measure of market performance. Conditions under which welfare is a monotonic function of the level of total output are derived.

Technical Details

RePEc Handle
repec:oup:restud:v:50:y:1983:i:1:p:37-56.
Journal Field
General
Author Count
1
Added to Database
2026-01-25