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1 In this particular example, the optimal two-part tariff is a per-unit price of $1 and a fixed fee of $29. But notice that with
1 In this particular example, the optimal two-part tariff is a per-unit price of $1 and a fixed fee of $29. But notice that with this pricing structure, the Low-type consumer will not purchase any units of the product! Why was it optimal for the firm to set a pricing structure that intentionally shut the low-type consumer out of the market
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International Economics
Authors: Dominick Salvatore
11th edition
978-1118177938, 1118177932, 1119915732, 978-1118476017, 1118476018, 978-1119915737
