A note on the economics of pass-through With two-part tariff pricing

rothman, dov;

When a firm sells a product together with another product, it may rely on a twopart
tariff. I explain that when a firm uses a two-part tariff, a cost increase may or
may not be passed through to final consumers. Depending on the characteristics
of final consumers� demand, a cost increase could result in no increase in the
price of either product, an increase in the price of both products, or an increase
in the price of one product and a decrease in the price of the other product