Two-Park Tariffs and Consumption Externalities
AbstractThis paper provides explicit characteristics of those two-part tariffs which maximize profit and consumers' plus producer's surplus. The effect of consumption externalities (as in telecommunications systems) is then explored. The characterizations are in terms of elasticities of demand with respect to price, income, and the number of other customers in the system.
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Bibliographic InfoArticle provided by The RAND Corporation in its journal Bell Journal of Economics.
Volume (Year): 6 (1975)
Issue (Month): 2 (Autumn)
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- Auerbach, Alan J & Pellechio, Anthony J, 1978. "The Two-Part Tariff and Voluntary Market Participation," The Quarterly Journal of Economics, MIT Press, vol. 92(4), pages 571-87, November.
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