Accomodated here is a measure space of economic agents, each regarded as a profit maximizing producer, each endowed with his technology and resource bundle. Pooling of private endowments generates a cooperative game with side payments.

Two producers delegate sales of differentiated products to common retailers, each with a monopoly position. Each producer can offer either a linear or a two-part tariff. In the single period game each producer's dominant strategy is to use a two-part tariff. If the two producers' products are...