Nonlinear Pricing

Nonlinear Pricing
Author: Robert B. Wilson
Publisher: Oxford University Press, USA
Total Pages: 446
Release: 1993
Genre: Business & Economics
ISBN: 9780195115826

What do phone rates, frequent flyer programs, and railroad tariffs all have in common? They are all examples of nonlinear pricing. Pricing is nonlinear when it is not strictly proportional to the quantity purchased. The Electric Power Research Institute has commissioned Robert Wilson to review the various facets of nonlinear pricing. The work starts with a general non-mathematical discussion, followed by a more technical presentation intended for readers with a fairly advanced background. Thorough and detailed, this study has ample examples of case studies from a variety of industries.

Bundling and Nonlinear Pricing in Telecommunications

Bundling and Nonlinear Pricing in Telecommunications
Author: Yao Luo
Publisher:
Total Pages: 40
Release: 2019
Genre:
ISBN:

I develop a multiproduct nonlinear pricing model where a firm sells both discrete and continuous goods/services to consumers with multidimensional heterogeneity. I derive the optimal selling mechanism and provide primitive conditions under which different bundling strategies arise. Exploiting the optimality conditions of both the firm and the consumer, I show that the model structure is nonparametrically identified and propose a three-step semiparametric estimation procedure. An application to China Telecom data shows that mixed bundling is beneficial to both the firm and the consumer relative to component pricing.

Price and Non-Price Determination in the Multiproduct Firm, 227-66 (Classic Reprint)

Price and Non-Price Determination in the Multiproduct Firm, 227-66 (Classic Reprint)
Author: Glen L. Urban
Publisher: Forgotten Books
Total Pages: 46
Release: 2017-12-16
Genre: Business & Economics
ISBN: 9780332978765

Excerpt from Price and Non-Price Determination in the Multiproduct Firm, 227-66 See T. E. Pfouts, The Theory of Cost and Production in the Multiproduct Firm, Econometrica XXIX (october pp. 650-658 for a non-linear formulation. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Price and Non-Price Determination in the Multiproduct Firm

Price and Non-Price Determination in the Multiproduct Firm
Author: Glen L. Urban
Publisher: Sagwan Press
Total Pages: 52
Release: 2018-02-08
Genre: History
ISBN: 9781377027364

This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work was reproduced from the original artifact, and remains as true to the original work as possible. Therefore, you will see the original copyright references, library stamps (as most of these works have been housed in our most important libraries around the world), and other notations in the work. This work is in the public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work. As a reproduction of a historical artifact, this work may contain missing or blurred pages, poor pictures, errant marks, etc. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.

Telecommunications Pricing

Telecommunications Pricing
Author: Bridger M. Mitchell
Publisher: Cambridge University Press
Total Pages: 332
Release: 1991-11-29
Genre: Business & Economics
ISBN: 9780521426787

Systematically reviews recent innovations in the economic theory of pricing and extends results to the conditions which characterize telecommunications markets

Capacity Pricing

Capacity Pricing
Author: Shmuel Oren
Publisher:
Total Pages: 27
Release: 1982
Genre: Prices
ISBN:

A central issue in price theory is how to set prices for services that require the seller to incur a setup cost. In this paper we adopt a novel approach using nonlinear pricing, and address the special case of a monopoly. Restrictive assumptions are imposed on the cost and demand functions, but these enable a complete characterization of the optimal pricing policy. The problem we address is formally one of nonlinear pricing for a multiproduct monopoly, which has been studied by Mirman and Sibley 1980. However, their analysis does not recognize the crucial role of the discontinuity in the cost function and its ramifications for the optimal pricing policy. (Author).

An Empirical Analysis of Optimal Nonlinear Pricing

An Empirical Analysis of Optimal Nonlinear Pricing
Author: Soheil Ghili
Publisher:
Total Pages: 0
Release: 2023
Genre:
ISBN:

In "continuous choice" settings, consumers decide not only on whether to purchase a product, but also on how much to purchase. As a result, firms should optimize a full price schedule rather than a single price point. This paper provides a methodology to empirically estimate the optimal schedule under multi-dimensional consumer heterogeneity. We apply our method to novel data from an educational-services firm that contains purchase-size information not only for deals that materialized, but also for potential deals that eventually failed. We show that the optimal second-degree price discrimination (i.e., optimal nonlinear tariff) improves the firm's profit upon linear pricing by about 7.9%. That said, this second-degree price discrimination scheme only recovers 7.4% of the gap between the profitability of linear pricing (i.e., no price discrimination) and that of infeasible first degree price discrimination. We also conduct several further counterfactual analyses (i) comparing the role of demand- v.s. cost-side factors in shaping the optimal price schedule, (ii) examining third-degree price discrimination, and (iii) empirically quantifying the magnitude by which incentive-compatibility constraints impact the optimal pricing and profits.