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Excludable public goods: Pricing and social welfare maximization

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  • Bai, Chong-En
  • Lu, Yi
  • Tao, Zhigang

Abstract

We compare two pricing strategies -- buffet pricing and usage pricing -- of excludable public goods for social welfare maximization. Buffet pricing is better than usage pricing for low consumer heterogeneity, while the opposite holds for high consumer heterogeneity.

Suggested Citation

  • Bai, Chong-En & Lu, Yi & Tao, Zhigang, 2009. "Excludable public goods: Pricing and social welfare maximization," Economics Letters, Elsevier, vol. 103(2), pages 72-74, May.
    • Handle: RePEc:eee:ecolet:v:103:y:2009:i:2:p:72-74
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    References listed on IDEAS

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    Cited by:

    1. Chang Jen-Wen, 2020. "Should the Talk be Cheap in Contribution Games?," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 20(2), pages 1-16, June.

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