Two-part tariffs, marginal cost pricing and increasing returns in a general equilibrium. model.

Examines the merits of a system of two-part tariffs in the context of a general equilibrium framework capable of analyzing equilibria in the presence of nonconvexities. Negative implications for the attractions of a system of marginal cost pricing and multipart tariffs; Conditions under which marginal cost pricing with two-part tariffs may support a Pareto-efficient equilibrium. (From Ebsco)

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