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Sustainability in a Multiproduct and Multiple Agent Contestable Market

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Iehle_2.PDF (271.5Kb)
Date
2009
Notes
La version attachée à cette notice est celle du working paper publié dans la série MPRA Paper n°13013.
Dewey
Economie Industrielle
Sujet
Subsidy Free Princing; Existence Result; Cooperative game; Sustainability; Natural monopoly
JEL code
C71; L11; L12
Journal issue
Bulletin of Economic research
Volume
61
Number
2
Publication date
04-2009
Article pages
151-164
Publisher
Blackwell
DOI
http://dx.doi.org/10.1111/j.1467-8586.2009.00308.x
URI
https://basepub.dauphine.fr/handle/123456789/84
Collections
  • LEDa : Publications
Metadata
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Author
Iehlé, Vincent
Type
Article accepté pour publication ou publié
Abstract (EN)
We prove that a natural monopoly can set subsidy free pricing and sustainable pricing schedules in general economic environment. The setting is a multiproduct and multiple agent contestable market where demands are elastic and where rivals can enter the sub-markets composed by a set of the products line and a set of agents. Our results suggest that the existence results of the extant literature admit analogues even in an environment where rivals have enlarged possibilities to enter the market and where demands react to prices. The approach makes use of cooperative games to deduce the main results under conditions of fair sharing cost, threshold in the consumption and regularity of the profit function.

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