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TECHNICAL CHANGE AND INVESTMENT LEVEL IN OPTIMAL NON-LINEAR PRICING.

By Patrick Guy

Abstract

In this paper, we develop an adverse selection model where a monopoly choices a non-linear pricing associated with an investment level which defines the technology of production used. We show that, in general, to implement a non-linear pricing the monopoly choice a level of investment, which depends of the type of consumer and, also, that the level of investment for each type is correlated with the recovery degree of the investment.Adverse selection, Investment, Non linear pricing, Technology of production.

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