منابع مشابه
Mixing Goods with Two-Part Tariffs∗
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 ...
متن کاملTwo-part Tariffs and Multistage Programming
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...
متن کاملDoing More with Less: Price Discrimination with Three-part vs Two-part tariffs
We show that a relatively small menu of three-part tariffs (3PTs) can be more profitable and, sometimes, socially more desirable than a larger menu (more items) of two-part tariffs (2PTs). Often, a single three-part tariff can beat a sorting menu comprising multiple two-part tariffs. Moreover, this 3PT menu can be designed with less information about consumer preferences, relative to the menu o...
متن کاملNetwork externalities and two-part tariffs in telecommunication markets
This article analyzes demand side particularities of telecommunications markets and their consequences for the market structure. I assume that telecommunications markets are characterized by two distinguishing features: (i) the efficacy of network externalities and (ii) the presence of two-part tariffs as a simple instrument of price discrimination. Then, the usual tendency to conformity establ...
متن کاملSimplifying difficult calculations: consumer choice of two-part tariffs
Purpose – This paper aims to outline a decision process for how consumers choose among two-part tariffs which consist of a flat fee plus a per unit charge for usage over an allowance. The paper also seeks to examine what types of decision aids help consumers choose lower cost tariffs. Design/methodology/approach – The approach used is two experimental studies. Findings – Most consumers do not c...
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ژورنال
عنوان ژورنال: European Economic Review
سال: 2007
ISSN: 0014-2921
DOI: 10.1016/j.euroecorev.2006.11.004