New Study Reveals Efficient Pricing Strategy for Public Goods Access.
The article explores how to efficiently provide a public good that can be restricted to certain users. By using a model where people's preferences are private, the researchers found a way to determine the best amount of the good to provide. They suggest a method that sets a fixed quantity of the good and charges set fees for access. These fees might vary based on users' preferences, but if names don't reveal preferences, average cost pricing can be justified.