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| Author: | Silva, E. |
| Title: | A-la-carte or smorgasbord? Multiproduct clubs with costly exclusion |
| Journal: | Journal of Urban Economics
1997 : MAR, VOL. 41:2, p. 264-280 |
| Index terms: | URBAN ENVIRONMENT ECONOMICS MULTIPRODUCT COMPANIES |
| Language: | eng |
| Abstract: | Decentralised provision of multiple congestible and excludable goods is generally not socially optimal if similar goods are provided simultaneously by smorgasbord multiproduct clubs, which sell multiple club services at single prices, and other clubs, which sell services at individual prices. The different pricing rules for the similar club goods introduce an interclub externality: consumers have an incentive to use the services of smorgasbord multiproduct clubs at levels in excess of the socially optimal. |
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