This paper examines the optimal specific tax/subsidy policy for a monopoly under multi-tier pricing. It shows, among others, that an increase in a specific tax on any tier will raise (reduce) the cumulative output of preceding (succeeding) tiers in the non-uniform scheme. In contrast, increasing...

This paper explores a monopolist's optimal multi-tier quantity-discount prices and shows that only the last tier's marginal cost is relevant in determining the tier prices and each tier's price is equal to its preceding tier's marginal revenue. An increase in total output is associated with...