Nonlinear prices, homogeneous goods, search

Arbeitspapier

We analyze competition on nonlinear prices in homogeneous goods markets with consumer search. In equilibrium firms offer two-part tariffs consisting of a linear price and lump-sum fee. The equilibrium production is socially efficient as the linear price of equilibrium two-part tariffs equals to the production marginal cost. Firms thus compete in lump-sum fees, which are dispersed in equilibrium. We show that sellers enjoy higher profit, whereas consumers are worse-off with two-part tariffs than with linear prices. The competition softens because with two-part tariffs firms can make effective per-consumer demand less elastic than the actual demand.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ZEW Discussion Papers ; No. 21-092

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Consumer Economics: Theory ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Oligopoly and Other Imperfect Markets
• Thema: Nonlinear prices ; consumer search ; homogeneous goods

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Atayev, Atabek
• Ereignis: Veröffentlichung
• (wer): ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
• (wo): Mannheim
• (wann): 2021

Weitere Informationen

• Handle: http://hdl.handle.net/10419/247701
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ