The monopolist is not the best environmentalist's best friend: An example

Philippe Mahenc (1) , Marion Podesta (2)

1 LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée
2 IREGE - Institut de Recherche en Gestion et en Economie

This letter addresses the second-degree price discrimination issue when a mo- nopolized product is tied with environmental quality. The monopolist may degrade environmental quality too much when marginal valuations of environmental quality and the good itself are positively related across consumers.

Mots clés: environmental quality; public good; price discrimination; tying

Domaines: Economies et finances

Philippe Mahenc, Marion Podesta. The monopolist is not the best environmentalist's best friend: An example. Economics Letters, 2012, 115 (3), pp.379-382. ⟨hal-00955470⟩