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A Graphical Exposition of the Profit Maximizing Two-Part Tariff

Frederick Chen

The American Economist, 2022, vol. 67, issue 1, 116-122

Abstract: This note presents a simple graphical approach for deriving the profit maximizing two-part tariff when there are two types of consumers in the market. The exposition covers both the case in which a monopoly can offer only one two-part tariff plan and the case in which the monopoly can offer two different plans. JEL Classification : D4

Keywords: two-part tariff; price discrimination (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:sae:amerec:v:67:y:2022:i:1:p:116-122

DOI: 10.1177/05694345211019721

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