We analyze optimal multiproduct nonlinear prices in the case where consumer tastes are characterized by more than one taste parameter. We present conditions under which the optimal nonlinear price schedule can be computed by finding optimal price schedules separately for each market. If so, they...

In a recent issue of this journal, L.L. Johnson and D.P. Reed (J and R) address an important regulatory issue concerning the 'economy of scope' of integrated broadband networks versus separate voice and cable TV networks. However, we do not believe that the technical question of economy of scope...

This paper considers assumptions on consumer heterogeneity that can generate bidirectional distortion in a model of quality discrimination. It is shown that the profit-maximizing strategy can involve the simultaneous degradation of quality at the low end of the spectrum, while quality...

The standard model of monopolistic imperfect quality discrimination involving consumer self-selection has shown that no distortion occurs at the highest quality level, while all lower quality levels are degraded in order to maintain profitable market segmentation. This result flows from the...

<title>Abstract</title> This article presents a rigorous version of the basic model of an increasing-cost competitive industry found in many textbooks. In the model, firms are infinitesimal, which justifies price-taking behavior and a continuous industry supply curve. The industry supply curve slopes upward...