Look at www.awlonline.com/carlton perloff De- rivation of the Optimal Two-Part Tariff, which dis- cusses the optimal two

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Look at www.awlonline.com/carlton perloff "De- rivation of the Optimal Two-Part Tariff," which dis- cusses the optimal two two-part tariffs to charge. Explain intuitively why it is optimal to charge a price equal to the marginal price of m to the consumer with the highest willingness to pay.

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Modern Industrial Organization

ISBN: 9780321011459

3rd Edition

Authors: Dennis W. Carlton, Jeffrey M. Perloff

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