Are Two-Part Tariffs Efficient When Consumers Plan Ahead?: An Empirical Study
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Document De Treball Creap2006-04 Are Two-part Tariffs Efficient When Consumers Plan Ahead?: an Empirical Study
During the last two decades there has been an increase in using dynamic tariffs for billing household electricity consumption. This has questioned the suitability of traditional pricing schemes, such as two-part tariffs, since they contribute to create marked peak and offpeak demands. The aim of this paper is to assess if two-part tariffs are an efficient pricing scheme using Spanish household ...
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In many service industries, firms introduce three-part tariffs to replace or complement existing two-part tariffs. While both twoand three-part tariffs have been studied in the extant literature, to our best knowledge there have been no empirical studies of customer choice and usage when both types of tariffs are on offer. A pertinent question in that context is whether three-part tariff usage ...
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We consider a market where consumers mix goods offered by two firms differentiated a la Hotelling, and show how tariff structures affect consumers, profits, and location decisions. As compared to linear pricing, when firms charge two-part tariffs they make higher profits while consumers are worse off. The resulting allocation is not efficient since firms choose extreme locations and too little ...
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This article demonstrates the relationship between the utility function's parameters which represent consumer's taste and the reservation price. We describe the changes in the reservation price analytically and supplement the geometrical illustrations by economic interpretations. We formulate the monopolist’s problem of setting the price of a capital good and the price of a service that the cap...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2006
ISSN: 1556-5068
DOI: 10.2139/ssrn.1852258