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CRC 901 – On-The-Fly Computing (OTF Computing) Show image information

CRC 901 – On-The-Fly Computing (OTF Computing)

Monday, 20.05.2019 | 13.00 - 14.00 Uhr | Warburger Str. 100, room Q4.245

Talk given by Prof. Dr. Tobias Wenzel (University of Sheffield)

On May 20, 2019, Prof. Dr. Tobias Wenzel will give a talk about "Complex pricing and consumer-side attention" in the context of the SFB 901.


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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