1. Outline for Wednesday, August 13
Final Friday 8am-9:50 in 105, across the hallway
Review session Thursday 6pm here
Review
Edgeworth box

2. Two-part tariff
A type of 2nd-degree price discrimination
Charge a flat per-unit price
Then charge an access fee to get the rest of the
consumer’s utility

3. Two-part tariff example
A type of 2nd-degree price discrimination
Charge a flat per-unit price
Then charge an access fee to get the rest of the
consumer’s utility
Each consumer will demand QD = 300 – 3P and we
are charging them a flat rate of P = MC = 20.
What access fee should we charge? You don’t need
to simplify your answer.

4. General equilibrium
Calculate prices and quantities in all markets
together
Takes care of the positive feedback effects we have
in partial equilibrium analysis