Two-Park Tariffs and Consumption Externalities
Volume: Volume 6, No. 2
Issue: Autumn 1975
Pages: pp. 661-670
Authors: Stephen C. Littlechild
Title: Two-Park Tariffs and Consumption Externalities
Abstract: This paper provides explicit characteristics of those two-part tariffs which maximize profit and consumers' plus producer's surplus. The effect of consumption externalities (as in telecommunications systems) is then explored. The characterizations are in terms of elasticities of demand with respect to price, income, and the number of other customers in the system.
JEL Classification
Regulation of Public Utilities (6130)
Welfare Theory General (0240)