Job-to-job turnover provides a way for employers to escape statutory firing costs, as unprofitable workers may willfully quit their job on receiving an outside offer, thus sparing their incumbent employer the firing costs. Furthermore, employers can induce their unprofitable workers to accept...

This paper shows that when amonopolist uses a nonlinear pricing (package pricing), and consumer valuations are non-ordered (or demands cross), then the pro maximizing output sold to all types of consumer can also be welfare maximizing. Conditions derived show that this result is not rare and...