Two-part tariff, demand uncertainty and double marginalization: An experiment

C-Tier
Journal: Economics Letters
Year: 2025
Volume: 247
Issue: C

Authors (3)

Bonroy, Olivier (Laboratoire d'Économie Appliqu...) Garapin, Alexis (not in RePEc) Pasquier, Nicolas (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In an uncertain demand environment, the per-unit price of a two-part tariff can have insurance properties, insofar as it transfers risk from risk-averse downstream firms to less risk averse upstream firms, and compensation properties insofar as it compensates downstream firms for lessened attractiveness of trade. Both properties have opposite effects such as the first one can increase double marginalization and the second one can mitigate it. This paper provides experimental evidence of both properties.

Technical Details

RePEc Handle
repec:eee:ecolet:v:247:y:2025:i:c:s0165176525000084
Journal Field
General
Author Count
3
Added to Database
2026-01-24