Chapter 13- Two-Part Tariff TwO-part Tariff °Two- part Tariff Consumer utility: Usm+2VQ Budget constraint:m+++p?sI r-φ-p+2y (133) Derived demand: p=vQi i.e. Q= (134) Firm's uniform pricing: K, capacity constraint (13) andq1=K, and hence x=√R Firm charges fixed fee only wr(引)=φs.r-φ+2R≥I=U (136) 丌2≡x(=如,P=0=2k>R=r(φ=0,P=1/√R)=nChapter 13 – Two-Part Tariff Two-part Tariff • Two-part Tariff • Consumer utility: • Budget constraint: • • Derived demand: • Firm’s uniform pricing: K, capacity constraint • Firm charges fixed fee only: © Wen Cao 4