Explain how firms try to extract consumer surplus using two-part tariffs.

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1) Explain how firms try to extract consumer surplus using two-part tariffs.

MAXIMUM 1000 words

Indicative bibliography

Goolsbee A, Levitt S and Syverson C (2013) Microeconomics, MacMillan Higher

Education (International edition). Ch. 10

Perloff, J. M. (2012). Microeconomics, 6th ed., Pearson. Ch. 12

Pindyck, R. S. and Rubinfeld, D. L. (2009). Microeconomics, 7th ed., Pearson/Prentice-Hall international edition. Ch. 11

Varian, H. (2010). Intermediate Microeconomics: a modern approach, 8th ed., Norton. Ch. 25

Oi, Walter Y. (1971). ?A Disneyland Dilemma: Two-Part Tariffs for a Mickey Mouse Monopoly.? Quarterly Journal of Economics, p. 77 ? 96.

Kolay, Sreya and Shaffer, Greg (2003). ?Bundling and Menus of Two-Part Tariffs.? The Journal of Industrial Economics, p. 51, 3, 383 ? 403.

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