Edlin, Aaron S.; Epelbaum, Mario - Centro de Investigación Económica (CIE), Departamento … - 1993
We ask when firms with increasing returns can cover their costs independently by charging two-part tariffs (TPT's)---a condition we call independent viability. To answer, we develop notions of substitutability and complementarity that account for the total value of goods and use them to find the...