A theoretical model is adopted in order to examine optimal fare and optimal quality of supply schemes for a transport operator. The analysis shows how fares and quality of supply are related to travel distance and to the transport operator's weight on profit versus consumer surplus. Under...

We study the impact a redistribution of income has on the decisions of a health care innovator and the utility of consumers. We find that income redistribution from rich to poor increases the quality of the medical innovation, reduces its price and increases the utility of some of the consumers...