How much information do firms require

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Reference no: EM133706679

Question: How Much Information Do Firms Require? To choose the right two-part tariff in our example, the store needed to know, as before, the customer's WTP for every unit. Of course, this is hard to know in practice. Let's think about the "informational burden" on firms with two-part tariffs more generally. Do firms require more information about customers, or less, to effectively implement two-part tariffs (compared to the case of perfect price discrimination)?

Reference no: EM133706679

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