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Buffet Pricing

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Author Info
Nahata, Babu
Ostaszewski, Krzysztof
Sahoo, Prasanna

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Abstract

This article analyzes a commonly used pricing practice, which the author calls 'buffet pricing,' in which for a fixed entry fee consumers can consume an unlimited quantity during a specified period of time. When consumers are homogeneous in preferences, this form of pricing can be more profitable than a two-part tariff if the total cost under a two-part tariff is greater than the 'net' total cost under buffet pricing. For heterogeneous consumers, depending on the distribution of consumer types and the relative magnitudes of transaction and production costs, buffet pricing can also be more profitable than two-part tariffs. Copyright 1999 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Business.

Volume (Year): 72 (1999)
Issue (Month): 2 (April)
Pages: 215-28
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ucp:jnlbus:v:72:y:1999:i:2:p:215-28

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Postal: The University of Chicago Press, Journals Division, P.O. Box 37005 Chicago, IL 60637
Web page: http://www.journals.uchicago.edu/JB/home.html

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  1. Fernandez, Jose & Nahata, Babu, 2009. "Pay What You Like," MPRA Paper 16265, University Library of Munich, Germany. [Downloadable!]
  2. Lilo Locher, 2005. "Public Library Fees in Germany," Journal of Cultural Economics, Springer, vol. 29(4), pages 313-324, November. [Downloadable!] (restricted)
  3. Daniel Flores, 2009. "All you can drink: should we worry about quality?," Journal of Regulatory Economics, Springer, vol. 35(1), pages 1-18, February. [Downloadable!] (restricted)
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This page was last updated on 2009-12-2.

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