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Monopoly price discrimination with constant elasticity demand
(Departamento de Fundamentos del Análisis Económico I, 2013-11)
This paper presents new results on the welfare e¤ects of third-degree price discrimination under constant elasticity demand. We show that when both the share of the strong market under uniform pricing and the elasticity ...
An austerity-driven energy reform
(University of the Basque Country, Department of Foundations of Economic Analysis II, 2013-12)
In July 2013, the government approved a major overhaul of the Spanish electricity sector to correct existing imbalances that have led to an exponential increase of regulated electricity costs and a huge tariff deficit. The ...
Understanding Tariff Deficit and its Challenges
(University of the Basque Country, Department of Foundations of Economic Analysis II, 2013-01)
Regulators and market participants have become increasingly concerned about the Spanish electricity tariff deficit due to its size and the difficulties to control its growth. The deficit can be traced to inefficiencies in ...