Hidden “junk” fees have the potential to distort competition, creating high costs to consumers. However, regulating them can lead to adverse effects, especially in complex markets with intermediaries where they are most prevalent. To explore the equilibrium adjustments of regulating hidden...

Although there is ample empirical evidence that congestion charges can effectively reduce traffic congestion and its detrimental effects, this instrument has only been implemented in a handful European cities. On the basis of a randomized information experiment that was embedded in a survey...

Electric mobility and renewable energy play key roles in the global energy transition. In this context, vehicle- to-grid technology, which enables bidirectional energy ŕow between electric vehicles and the grid, could make electric vehicles usable as energy storage units, thus supporting grid...

This paper investigates the impact of price transparency on equilibrium prices and fees by considering a policy change implemented by Airbnb that affected the transparency of cleaning fees for IP addresses from the European Union (EU). Using a difference-in-differences approach, we find a...

This technical background paper evaluates the progress of African nations in establishing effective fiscal frameworks for digital infrastructure across the continent. Through a comprehensive comparative analysis of legislative, tax, and regulatory policies in over 20 African countries, the...

This paper considers the design of efficient Distribution Use of System (DUoS) tariffs for the Irish electricity distribution network. We calculate indicative costreflective 'Coasian' tariff for residential, commercial and industrial consumers. Under a cost-reflective 'Coasian' structure, non...

This study investigates airport congestion pricing and capacity investment with cost recovery consideration. Two countries’ airports are interlinked and served by each country’s home carrier. Our global welfare maximization shows that when per-passenger subsidies are not feasible under...

We show that the trading-fee breakdown (fee pricing) depends on the distribution of investor gains-from-trade relative to the tick size. Absent price discreteness, an increase in investor gains-from-trade increases the total fee proportionally, but the fee breakdown has no effect. With price...

The aim of this contribution is to confirm or dispute the hypothesis that the new system of charges for municipal waste management in the Czech Republic is suitable for both taxpayers and municipalities. To achieve this aim, the article critically describes the old and new methods of communal...

This study explores the interaction between the quality of public services, the implementation of user fees, and the resulting potential for exclusion, that can lead to negative externalities. Our theoretical framework takes account of the possible externalities that result from excluded users...

This paper presents an empirical analysis of the introduction, in October 2018, of maximum thresholds ("caps") on debit card interchange fees for domestic payment cards in Brazil. We investigate the behavior of card issuers' revenues from debit and credit card interchange fees, the merchant...

Restrictions on certifiers' fee structures are irrelevant for maximizing their profits and trade efficiency, and for the implementability of (monotone) distributions of rents. The irrelevance results exploit that certification schemes involve two substitutable dimensions-the fee structure and...

This study proposes an approach using the Kuhn-Tucker model to determine the extent to which the number of visitors to a recreational site would decrease if a user fee were introduced. This approach is promising in terms of consistency with economic theory and computational feasibility, assuming...

In this paper we empirically address the issue of whether reductions in card payment interchange fees have a significant impact on prices paid by consumers. The answer to this question is at the core of most competition policy cases and regulations that have been applied to card payment markets....

In models of certification possible restrictions on the nature of the fee structures are commonly analyzed. We show that they are irrelevant for the certifier's ability to maximize profits and trade efficiency. Our results establish that certification schemes involve two substitutable...

The CFTC has recently licensed a commercial prediction market to operate in the US. Previous theoretical work has not incorporated that prediction markets charge fees. We examine the impact of fees by introducing them to a model in which the market price equals the true probability when there...

The active mutual fund equilibrium model developed by Berk and Green (2004) predicts that fees should not matter for investors’ mutual fund choices. We examine how fees influence demand for active mutual funds by analyzing time variation in funds’ fees. Since investors should not pay "alpha...