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The Two-Part Tariff and Voluntary Market Participation

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  • Alan J. Auerbach
  • Anthony J. Pellechio

Abstract

I. Introduction, 571. — II. The two-part tariff, 573. — III. Disconnection, 575. — IV. Specific functions and simulation, 577. — V. Conclusion, 583. — Appendix A, 584. — Appendix B, 585.

Suggested Citation

  • Alan J. Auerbach & Anthony J. Pellechio, 1978. "The Two-Part Tariff and Voluntary Market Participation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 92(4), pages 571-587.
    • Handle: RePEc:oup:qjecon:v:92:y:1978:i:4:p:571-587.
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    References listed on IDEAS

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    1. Yew-Kwang Ng & Mendel Weisser, 1974. "Optimal Pricing with a Budget Constraint—The Case of the Two-part Tariff," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(3), pages 337-345.
    2. R. G. Lipsey & Kelvin Lancaster, 1956. "The General Theory of Second Best," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 24(1), pages 11-32.
    3. Harberger, Arnold C, 1971. "Three Basic Postulates for Applied Welfare Economics: An Interpretive Essay," Journal of Economic Literature, American Economic Association, vol. 9(3), pages 785-797, September.
    4. Stephen C. Littlechild, 1975. "Two-Park Tariffs and Consumption Externalities," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 661-670, Autumn.
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    Cited by:

    1. Miravete, Eugenio, 2004. "Are all those Calling Plans Really Necessary? The Limited Gains From Complex Tariffs," CEPR Discussion Papers 4237, C.E.P.R. Discussion Papers.
    2. Yin, Xiangkang, 2004. "Two-part tariff competition in duopoly," International Journal of Industrial Organization, Elsevier, vol. 22(6), pages 799-820, June.
    3. Chen Ling & David Scrogin, 2014. "Optimal pricing of public lotteries and comparison of competing mechanisms," Applied Economics, Taylor & Francis Journals, vol. 46(26), pages 3211-3223, September.
    4. José Silva Ruiz, 2010. "La eficiencia y la equidad en la fijación de precios de los servicios públicos: evolución de la teoría de la tarifa óptima en dos partes y el caso del servicio de agua potable," Revista CIFE, Universidad Santo Tomás, June.
    5. Severin Borenstein & Lucas W. Davis, 2012. "The Equity and Efficiency of Two-Part Tariffs in U.S. Natural Gas Markets," Journal of Law and Economics, University of Chicago Press, vol. 55(1), pages 75-128.
    6. Kim Huat Goh & Jesse C. Bockstedt, 2013. "The Framing Effects of Multipart Pricing on Consumer Purchasing Behavior of Customized Information Good Bundles," Information Systems Research, INFORMS, vol. 24(2), pages 334-351, June.
    7. Haruvy, Ernan E. & Li, Tao & Sethi, Suresh P., 2012. "Two-stage pricing for custom-made products," European Journal of Operational Research, Elsevier, vol. 219(2), pages 405-414.
    8. Roger Sherman & Michael Visscher, 1982. "Rate-of-Return Regulation and Two-Part Tariffs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(1), pages 27-42.

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