Excludable public goods: Pricing and social welfare maximization

We compare two pricing strategies -- buffet pricing and usage pricing -- of excludable public goods for social welfare maximization. Buffet pricing is better than usage pricing for low consumer heterogeneity, while the opposite holds for high consumer heterogeneity.

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Year of publication:	2009
Authors:	Bai, Chong-En ; Lu, Yi ; Tao, Zhigang
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 103.2009, 2, p. 72-74
Publisher:	Elsevier
Keywords:	Excludable public goods Per-unit usage pricing Buffet pricing Social welfare maximization

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005023462