This paper sets up a microeconomics model to analyze the market outcomes of two-part tariffs and three-part tariffs …. Specifically, this paper compare the market outcomes of a single two-part tariffs to a single three-part tariffs under the …. The results show that a single two-part tariffs and a single three-part tariffs bring forth the same market outcomes …

Service providers often offer tariff structures with several two-part tariffs that consist of a fixed fee and a usage … price, such that consumers may pick the tariff they prefer. Prices of tariffs have significant impacts on service providers …' profit, because they simultaneously influence consumers' tariff choices and their usage. The number of tariffs also plays an …