Abstract
A two-part tariff is a non-linear pricing technique in which the price of a product or service is composed of two parts: an entrance fee and a charge per unit of consumption. Compared to linear pricing, this methodology leads to higher profits by allowing a firm more freedom in extracting the consumer surplus. It is widely used in telecommunication services.
This chapter documents recent developments on non-linear pricing in a dynamic and competitive environment. The developments can also be viewed as extensions of the linear dynamic pricing literature by allowing a two-part tariff scheme.
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Fruchter, G.E. (2005). Two-Part Tariff Pricing in a Dynamic Environment. In: Deissenberg, C., Hartl, R.F. (eds) Optimal Control and Dynamic Games. Advances in Computational Management Science, vol 7. Springer, Boston, MA. https://doi.org/10.1007/0-387-25805-1_9
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DOI: https://doi.org/10.1007/0-387-25805-1_9
Publisher Name: Springer, Boston, MA
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