Decision Sciences
4 years ago

New study reveals optimal pricing strategy for public goods provision.

1 view
Journal of Public Economics
The provision and pricing of excludable public goods: Ramsey–Boiteux pricing versus bundling
Martin Hellwig

Paper Summary

The article compares two ways of pricing public goods and finds that they are the same only if a certain condition is met. If this condition is not met, a method involving discounted combination tickets is better.

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