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Quantity Competition With Access Fees

  • Harrison, M.
  • Kline, J.J.

We analyze an oligopoly model where firms choose both quantities and access fees. Per unit prices are determined endogenously to equate quantity demanded with quantity supplied at each firm. In a Nash equilibrium of the game played by firms, the per unit prices equal mairginal cost and access fees may or may not extract all consumer surplus.

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Paper provided by Australian National University - Department of Economics in its series Papers with number 358.

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Length: 25 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:fth:aunaec:358
Contact details of provider: Postal: THE AUSTRALIAN NATIONAL UNIVERSITY, DEPARTMENT OF ECONOMICS, RESEARCH SCHOOL of PACIFIC STUDIES, RESEARCH SCHOOL OF SOCIAL SCIENCES, G.P.O. 4, CANBERRA ACT 2601 AUSTRALIA..O. BOX 4 CANBERRA 2601 AUSTRALIA.
Web page: http://economics.anu.edu.au/economics.htm

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  1. Kaneko, Mamoru & Yamamoto, Yoshitsugu, 1986. "The existence and computation of competitive equilibria in markets with an indivisible commodity," Journal of Economic Theory, Elsevier, vol. 38(1), pages 118-136, February.
  2. Shaffer, Sherrill, 1987. "Two-Part Tariffs in a Contestable Natural Monopoly," Economica, London School of Economics and Political Science, vol. 54(215), pages 315-16, August.
  3. Suzanne Scotchmer, 1985. "Two-Tier Pricing of Shared Facilities in a Free-Entry Equilibrium," RAND Journal of Economics, The RAND Corporation, vol. 16(4), pages 456-472, Winter.
  4. Castelli, Francesco & Leporelli, Claudio, 1993. "Critical mass of users versus critical mass of services in a multiproduct information service system," Information Economics and Policy, Elsevier, vol. 5(4), pages 331-355, December.
  5. Novshek, William., 1984. "On the Existence of Cournot Equilibrium," Working Papers 517, California Institute of Technology, Division of the Humanities and Social Sciences.
  6. David M. Kreps & Jose A. Scheinkman, 1983. "Quantity Precommitment and Bertrand Competition Yield Cournot Outcomes," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 326-337, Autumn.
  7. Scotchmer, Suzanne, 1985. "Profit-maximizing clubs," Journal of Public Economics, Elsevier, vol. 27(1), pages 25-45, June.
  8. Young, Allan Richard, 1991. "Transaction Cost, Two-Part Tariffs, and Collusion," Economic Inquiry, Western Economic Association International, vol. 29(3), pages 581-90, July.
  9. Ireland, Norman J, 1991. "Welfare and Non-linear Pricing in a Cournot Oligopoly," Economic Journal, Royal Economic Society, vol. 101(407), pages 949-57, July.
  10. Nicholas Economides & Steven S. Wildman, 1995. "Monopolistic Competition with Two-Part Tariffs," Working Papers 95-10, New York University, Leonard N. Stern School of Business, Department of Economics.
  11. Mandy, David M, 1992. "Nonuniform Bertrand Competition," Econometrica, Econometric Society, vol. 60(6), pages 1293-30, November.
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