Mixing Media with Two-Part Tariffs

Tommaso Valletti and Steffen Hoernig

No 5437, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We consider a media market where consumers mix content offered by different firms and firms charge two-part tariffs. As compared to pure linear pricing (pay-per-view), firms make higher profits, while consumers are worse off and the allocation is not first-best. We also consider flat subscription fees and show that they make mixing unattractive. Both two-part tariffs and pay-per-view Pareto-dominate flat fees.

Keywords: Two-part tariffs; Pay-per-view; Flat fees; Combinable products (search for similar items in EconPapers)
JEL-codes: L13 L82 (search for similar items in EconPapers)
Date: 2006-01
New Economics Papers: this item is included in nep-com, nep-cul, nep-mic and nep-mkt
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