Package size and the suppression of variety
de Meza, D.
(1988).
Package size and the suppression of variety.
International Journal of Industrial Organization,
6(3), 363-371.
https://doi.org/10.1016/S0167-7187(88)80017-1
(1988).
Package size and the suppression of variety.
International Journal of Industrial Organization,
6(3), 363-371.
https://doi.org/10.1016/S0167-7187(88)80017-1
In contrast to the result for a single-product monopoly, all-or-nothing offers are shown to strictly dominate two-part tariffs when more than one good is sold. Moreover, either form of price schedule creates an incentive to suppress product variety which is absent under linear pricing.