Multiproduct two part tariffs

Paul S. Calem*, Daniel F. Spulber

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

19 Scopus citations

Abstract

Two part pricing by a multiproduct monopoly and a differentiated oligopoly are examined and compared. Two part pricing policies are seen to depend on whether products are complements or substitutes and on whether or not the market is segmented. A principle result is that although competition tends to lower unit prices, there is no corresponding tendency for competition to reduce entry fees. The unit pricing rule is related to the Ramsey pricing rule. Oligopoly equilibrium unit prices equal marginal cost when there is one consumer type.

Original languageEnglish (US)
Pages (from-to)105-115
Number of pages11
JournalInternational Journal of Industrial Organization
Volume2
Issue number2
DOIs
StatePublished - Jun 1984

ASJC Scopus subject areas

  • Industrial relations
  • Aerospace Engineering
  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management
  • Industrial and Manufacturing Engineering

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