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- Q591434 subject Q7011191.
- Q591434 subject Q7012234.
- Q591434 abstract "A two-part tariff is a price discrimination technique in which 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, price discrimination techniques only occur 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.Depending on the homogeneity of demand, the lump-sum fee charged varies, but the rational firm will set the per unit charge above or equal to the marginal cost of production, and below or equal to the price the firm would charge in a perfect monopoly. Under competition the per-unit price is set below marginal cost.An important element to remember concerning two-part tariffs is that it is still price discrimination, of which an important feature is that the product or service offered by the firm must be identical to all consumers, hence, price charged may vary, but not due to different costs borne by the firm, as this would infer a differentiated product. Thus, while credit cards which charge an annual fee plus a per-transaction fee is a good example of a two-part tariff, a fixed fee charged by a car rental company in addition to a per-kilometre fuel fee is not so good, because the fixed fee may reflect fixed costs such as registration and insurance which the firm must recoup in this manner. This can make the identification of two-part tariffs difficult.".
- Q591434 thumbnail TwoPartTariffHomogDemandNAX.svg?width=300.
- Q591434 wikiPageWikiLink Q1200129.
- Q591434 wikiPageWikiLink Q13099651.
- Q591434 wikiPageWikiLink Q183384.
- Q591434 wikiPageWikiLink Q2424752.
- Q591434 wikiPageWikiLink Q268617.
- Q591434 wikiPageWikiLink Q26911.
- Q591434 wikiPageWikiLink Q319676.
- Q591434 wikiPageWikiLink Q358063.
- Q591434 wikiPageWikiLink Q37654.
- Q591434 wikiPageWikiLink Q382444.
- Q591434 wikiPageWikiLink Q39072.
- Q591434 wikiPageWikiLink Q4175604.
- Q591434 wikiPageWikiLink Q43637.
- Q591434 wikiPageWikiLink Q467092.
- Q591434 wikiPageWikiLink Q7011191.
- Q591434 wikiPageWikiLink Q7012234.
- Q591434 wikiPageWikiLink Q7170623.
- Q591434 wikiPageWikiLink Q7406919.
- Q591434 wikiPageWikiLink Q835678.
- Q591434 comment "A two-part tariff is a price discrimination technique in which 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, price discrimination techniques only occur 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.".
- Q591434 label "Two-part tariff".
- Q591434 depiction TwoPartTariffHomogDemandNAX.svg.