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Presentation by Tobias Wenzel about „ Complex pricing and consumer-side attention“

On 20th May 2019 (1-2pm) Tobias Wenzel, senior lecturer at the University Of Sheffield, will give a presentation about “Complex pricing and consumer-side attention” in Q4.245. Afterwards, Mr. Wenzel will be available for questions and discussions. His presentation is part of: https://wiwi.uni-paderborn.de/dep1/me/research/discussing-research/seam/

Abstract:

We analyze a situation in which two horizontally differentiated firms compete in two-part tariffs (i.e., a linear and fixed price), and some consumers are not fully informed about or ignore the linear per-unit price. Firms may offer a menu of such two-part contracts. We analyze two policy interventions which have been introduced in real markets: (i) abolishment of linear fees, i.e., a reduction in tariff complexity, and (ii) diminishing the range of contracts, i.e., a reduction in the number of two-part tariffs offered. We provide a characterisation of these policy interventions and study the effects on consumers, firms, and total welfare.

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