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The examples illustrate that purchase restraints can increase both firm profits and consumer surplus by making firm profits more sensitive to consumer experience, either directly by giving the consumer more control over the stream of profits or indirectly by constraining consumers to monitor more intensively.
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You can increase firm profits by making sure that in any dispute with a client who owes the firm money, the firm gets the better half of the argument, and the client is forced to pay more.
If free competition among lottery firms were allowed, market forces would prevent any one firm making "excessive" profits.
Second, eat-what-you-kill remuneration awards contingent income according to some measure of individual output that makes a direct contribution to firm profits, such as client charges or hours billed.
The rewards shared by top lawyers are part of a bigger picture of success at the top end of the legal profession, with Britain's 100 largest law firms making combined profits of £5.8bn in 2012-13 – up eight per cent on last year.
Moreover, firms' location matters as a firm close to similar firms makes more profits.
Opinion polls find a clear majority of Swedes against private firms making profits in public services.The government remains defiant.
Investors are able to differentiate between tech companies that are not making profits and firms in the real economy that do have a track record of earnings growth.
Nevertheless, Japanese firms are making record profits, and are investing to meet demand.
All this uncertainty deters investment.Thus although firms are making big profits, they are not re-investing enough.
Yet what most vexes critics of the market is not hefty retail margins but fear that energy firms are making outsized profits elsewhere, for example in power generation.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com