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- W2034394355 abstract "This article studies pricing for natural monopolies by using a cooperative game of joint production. Outputs are allocated by a price system. We introduce the concept of the second-best core, which is a subset of the set of zero-profit, second-best Pareto-optimal prices. Prices are such that no group of consumers subsidizes the purchase of another group. We consider the relations among the second-best core and sustainability, supportability, and natural monopoly. For specific preferences and technology we demonstrate the existence of the second-best core. We design a market mechanism for franchise allocation, which achieves second-best pricing without price regulation." @default.
- W2034394355 created "2016-06-24" @default.
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- W2034394355 date "1986-01-01" @default.
- W2034394355 modified "2023-09-26" @default.
- W2034394355 title "Second-Best Pricing and Cooperation" @default.
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- W2034394355 doi "https://doi.org/10.2307/2555387" @default.
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