This paper discusses the impact of income transfers between consumers of a monopoly. In this context, redistributing the incomes could induce an increase of the demand elasticity which leads to a lower monopoly price, beneficial to any consumer. Under mild assumptions on the demand function, we prove the existence of a transfer maximizing the market coverage which remains advantageous for any contributing consumer. It is proved that the producer is also better off. Then the transfer is Paretoimproving. In the linear demand case, analytical results are found. Extensions to Cournot oligopoly and natural monopoly pricing are considered. JEL Classification Numbers: D31, D64, H2, L13.

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SummaryWe develop a game-theoretic model of doping which focuses on the economic aspects of competitive sports. According to the model, incentives for athletes to use doping increase when (i) the efficiency of the drug test system is low, (ii) the number of competitions during one season is high, (iii) the spread of prizes from sports events is large, (iv) the perceived health cost is low. Implications for anti-doping policy are derived. We also discuss the optimal (anti-doping) competition design.

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