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Strategic nonlinear pricing under price-cap regulation

Article Abstract:

Price-cap regulation is analyzed with particular attention given to profit-maximizing nonlinear pricing and the indirect welfare effects that arise from profits made from pricing distortions under the regulatory scheme. FCC's price-cap policy for American Telephone and Telegraph Co is used as the model for the analysis. Incentives for nonlinear strategic pricing are discussed and their negative effect on consumers' and aggregate surplus under price-cap regulation are analyzed.

Author: Sappington, David E.M., Sibley, David S.
Publisher: Rand, Journal of Economics
Publication Name: RAND Journal of Economics
Subject: Economics
ISSN: 0741-6261
Year: 1992
Profit, Profits, Price control, Price regulations

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Multiproduct nonlinear pricing with multiple taste characteristics

Article Abstract:

Particular circumstances wherein optimal nonlinear price schedules are determined by seeking optimal price schedules separately are generated to assess optimal multiproduct nonlinear prices with several taste characteristics. Uniform ordering is shown to result in equal bundled and unbundled prices. Multiproduct nonlinear prices are also shown to have equivalent features such as single-product prices with uniform ordering of demand curves.

Author: Sibley, David S., Srinagesh, Padmanabhan
Publisher: Rand, Journal of Economics
Publication Name: RAND Journal of Economics
Subject: Economics
ISSN: 0741-6261
Year: 1997
Economics, Research and Development in the Social Sciences and Humanities, Pricing, Consumer preferences, Demand (Economics)

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Incentives for anticompetitive behavior by public enterprises

Article Abstract:

A reduced interest in profit by public business enterprises can cause non-competitive behavior such as price lowering and creating barriers to entry.

Author: Sidak, J. Gregory, Sappington, David E.M.
Publisher: Springer
Publication Name: Review of Industrial Organization
Subject: Economics
ISSN: 0889-938X
Year: 2003
United States, Government expenditures, Science & research, Other General Government Support, Government Enterprises-Total Govt, Competition (Economics), Economic policy, Government business enterprises, Public enterprises

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