In Australia, residential electricity prices are structured as conventional
two-part tariffs comprising a fixed charge and a 'flat-rate' variable energy charge.
To assess the robustness of the main results to the assumption on the contractual form, the model is solved using
two-part tariffs. Twopart tariff contracts are not affected by double marginalization (implying that they are more efficient than royalty rates).
Davis, "The Equity and Efficiency of
Two-Part Tariffs in U.S.
Usually
two-part tariffs distinguish between average and marginal payment [1].
In addition to constructing a framework for evaluations of the emerging carbon offset market, the article makes two contributions to the theoretical literature on efficient pricing with
two-part tariffs. First, we derive specific pricing formulas for a market intermediary that simultaneously has monopsony power with respect to upstream purchases and monopoly power with respect to downstream sales.
carriers would use a menu of
two-part tariffs, not three-part tariffs.
General theory is covered in sections on marginal cost pricing, Ramsey pricing, peak load pricing, pricing under uncertainty,
two-part tariffs and nonlinear pricing, and game theoretic approaches.
When retailers compete there are two feasible and legally permissible methods of achieving channel coordination: an explicit quantity-discount schedule or a menu of
two-part tariffs. (The latter is derived in detail in this paper.) A feasible and legally permissible alternative to channel coordination is for the manufacturer to utilize a sophisticated Stackelberg two-part tariff--itself a form of a quantity-discount schedule.
Willig(1978) showed that offering optional
two-part tariffs can cause a Pareto improvement, as long as all customers are final consumers and the existing tariff is retained as an option.
To reach optimality requires
two-part tariffs or other complicated nonlinear pricing schemes.
Also, when the regulated firm moves from linear price to uniform
two-part tariffs, the smaller users lose more of their consumer surplus than the larger users.
"Welfare Effects of Discriminatory
Two-Part Tariffs Constrained by Price Caps." Economics Letters 56(3): 293-298.
