Optimal selling procedures with fixed costs

Article Abstract:

Monopolists can often optimize their selling by setting a minimum price and allowing customers to decide how much they want to pay for the service or good depending on the degree of need or its position in their priority scale. The optimizing monopolists, furthermore, do not incur fixed costs by first producing the service or good. On the contrary, they sell or marketbefore they actually come out with the marketable product or service. Customers who are willing to pay more shoulder the fixed costs.

Marketing research, Market research, Overhead costs

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The organization and scope of agents: regulating multiproduct industries

Article Abstract:

An analysis of agent scope and organization in multiproduct industry regulation is presented. The analysis focuses on a mechanism design problem characterized by two-dimensionaluncertainty. The search for optimal policy for controlling a monopolist with private information on marginal costs is then considered. It is shown that regulators must balance between informational economies of scope and benefits of relative performance incentives for organizational selection.

Industry regulations, Government regulation of business, Trade regulation

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Rivalrous benefit taxation: the independent viability of separate agencies or firms

Article Abstract:

Independent viability is observed in the market where firms exhibiting increasing returns assign two-part tariffs (TPTs) independently to manage costs. The maximum industry surplus is established by setting factors of substitutability and complementarity to define total goods value. General equilibrium conditions are reached when independent viability exists for markets characterized by regulated monopolies with TPTs.

Taxation, Tariffs

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