When Two Part Tariffs Are Not Enough Mixing With Nonlinear Pricing
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Two Part Tariff
| Author | : Fouad Sabry |
| Publisher | : One Billion Knowledgeable |
| Total Pages | : 316 |
| Release | : 2024-04-15 |
| Genre | : Business & Economics |
| ISBN | : |
What is Two Part Tariff A two-part tariff (TPT) is a form of price discrimination wherein the price of a product or service is composed of two parts - a lump-sum fee as well as a per-unit charge. In general, such a pricing technique only occurs in partially or fully monopolistic markets. It is designed to enable the firm to capture more consumer surplus than it otherwise would in a non-discriminating pricing environment. Two-part tariffs may also exist in competitive markets when consumers are uncertain about their ultimate demand. Health club consumers, for example, may be uncertain about their level of future commitment to an exercise regimen. Two-part tariffs are easy to implement when connection or entrance fees can be charged along with a price per unit consumed. How you will benefit (I) Insights, and validations about the following topics: Chapter 1: Two-part tariff Chapter 2: Microeconomics Chapter 3: Monopoly Chapter 4: Monopolistic competition Chapter 5: Perfect competition Chapter 6: Imperfect competition Chapter 7: Deadweight loss Chapter 8: Economic surplus Chapter 9: Price discrimination Chapter 10: Profit maximization Chapter 11: Economic equilibrium Chapter 12: Monopoly profit Chapter 13: Allocative efficiency Chapter 14: Marginal revenue Chapter 15: Ramsey problem Chapter 16: Pricing strategies Chapter 17: Market distortion Chapter 18: Profit (economics) Chapter 19: Monopoly price Chapter 20: Markup (business) Chapter 21: Double marginalization (II) Answering the public top questions about two part tariff. (III) Real world examples for the usage of two part tariff in many fields. Who this book is for Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Two Part Tariff.
Mixing Goods with Two-Part Tariffs
| Author | : Steffen Hoernig |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2006 |
| Genre | : |
| ISBN | : |
We consider a market where consumers mix content offered by different firms. We show how tariff structures have an impact on firms' profits and efficiency. As compared to pure linear pricing, when firms charge two-part tariffs they make higher profits, while consumers are worse off and the allocation is not first-best since too little mixing occurs. Flat subscription fees make mixing unattractive and are Pareto-dominated by all the other types of tariffs.
Implementation of Competitive Nonlinear Pricing
| Author | : Sissel Jensen |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2006 |
| Genre | : |
| ISBN | : |
The paper studies how the optimal nonlinear quantity-payment allocation can be truthfully implemented by optional tariffs in a differentiated goods duopoly. Consumers choose from a menu of tariffs and are subsequently billed according to this. We find that implementation by simple two part tariffs may not be a feasible strategy in a duopoly because the optimal nonlinear tariff exhibits a convexity for lower quantities. We show that the optimal outcome can be implemented if the firms can use two part tariffs with inclusive consumption. The fixed fee includes a free consumption allowance, whereas subsequent consumption is charged according to a steep unit price. That way the firm is able to secure voluntary participation without violating the incentive constraint. The paper show some examples from the telecommunications industry where firms offer two part tariffs with free call minutes to low demand segments.
The Oxford Handbook of the Digital Economy
| Author | : Martin Peitz |
| Publisher | : Oxford University Press |
| Total Pages | : 921 |
| Release | : 2012-08-06 |
| Genre | : Business & Economics |
| ISBN | : 0199996377 |
The economic analysis of the digital economy has been a rapidly developing research area for more than a decade. Through authoritative examination by leading scholars, this handbook takes a closer look at particular industries, business practices, and policy issues associated with the digital industry. The volume offers an up-to-date account of key topics, discusses open questions, and provides guidance for future research. It offers a blend of theoretical and empirical works that are central to understanding the digital economy. The chapters are presented in four sections, corresponding with four broad themes: 1) infrastructure, standards, and platforms; 2) the transformation of selling, encompassing both the transformation of traditional selling and new, widespread application of tools such as auctions; 3) user-generated content; and 4) threats in the new digital environment. The first section covers infrastructure, standards, and various platform industries that rely heavily on recent developments in electronic data storage and transmission, including software, video games, payment systems, mobile telecommunications, and B2B commerce. The second section takes account of the reduced costs of online retailing that threatens offline retailers, widespread availability of information as it affects pricing and advertising, digital technology as it allows the widespread employment of novel price and non-price strategies (bundling, price discrimination), and auctions. The third section addresses the emergent phenomenon of user-generated content on the Internet, including the functioning of social networks and open source. The fourth section discusses threats arising from digitization and the Internet, namely digital piracy, privacy, and security concerns.
Nonlinear Pricing
| Author | : Robert B. Wilson |
| Publisher | : Oxford University Press, USA |
| Total Pages | : 446 |
| Release | : 1993 |
| Genre | : Business & Economics |
| ISBN | : 9780195115826 |
What do phone rates, frequent flyer programs, and railroad tariffs all have in common? They are all examples of nonlinear pricing. Pricing is nonlinear when it is not strictly proportional to the quantity purchased. The Electric Power Research Institute has commissioned Robert Wilson to review the various facets of nonlinear pricing. The work starts with a general non-mathematical discussion, followed by a more technical presentation intended for readers with a fairly advanced background. Thorough and detailed, this study has ample examples of case studies from a variety of industries.
Photoselective Chemistry, Volume 47, Part 2
| Author | : Joshua Jortner |
| Publisher | : John Wiley & Sons |
| Total Pages | : 734 |
| Release | : 2009-09-08 |
| Genre | : Science |
| ISBN | : 0470143126 |
The Advances in Chemical Physics series provides the chemical physics and physical chemistry fields with a forum for critical, authoritative evaluations of advances in every area of the discipline. Filled with cutting-edge research reported in a cohesive manner not found elsewhere in the literature, each volume of the Advances in Chemical Physics series serves as the perfect supplement to any advanced graduate class devoted to the study of chemical physics.
Handbook of Industrial Organization
| Author | : Richard Schmalensee |
| Publisher | : North Holland |
| Total Pages | : 1002 |
| Release | : 1989-09-11 |
| Genre | : Business & Economics |
| ISBN | : |
Determinants of firm and market organization; Analysis of market behavior; Empirical methods and results; International issues and comparision; government intervention in the Marketplace.
