Optimal Multiproduct Nonlinear Pricing With Correlated Consumer Types
Download Optimal Multiproduct Nonlinear Pricing With Correlated Consumer Types full books in PDF, epub, and Kindle. Read online free Optimal Multiproduct Nonlinear Pricing With Correlated Consumer Types ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
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.
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.
Handbook of Pricing Research in Marketing
Author | : Vithala R. Rao |
Publisher | : Edward Elgar Publishing |
Total Pages | : 617 |
Release | : 2009 |
Genre | : Business & Economics |
ISBN | : 1848447442 |
Pricing is an essential aspect of the marketing mix for brands and products. Further, pricing research in marketing is interdisciplinary, utilizing economic and psychological concepts with special emphasis on measurement and estimation. This unique Handbook provides current knowledge of pricing in a single, authoritative volume and brings together new cutting-edge research by established marketing scholars on a range of topics in the area. The environment in which pricing decisions and transactions are implemented has changed dramatically, mainly due to the advent of the Internet and the practices of advance selling and yield management. Over the years, marketing scholars have incorporated developments in game theory and microeconomics, behavioral decision theory, psychological and social dimensions and newer market mechanisms of auctions in their contributions to pricing research. These chapters, specifically written for this Handbook, cover these various developments and concepts as applied to tackling pricing problems. Academics and doctoral students in marketing and applied economics, as well as pricing-focused business practitioners and consultants, will appreciate the state-of-the-art research herein.
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.
Multiproduct Nonlinear Pricing
Author | : Mark Armstrong |
Publisher | : |
Total Pages | : 33 |
Release | : 1993 |
Genre | : Manufacturing industries |
ISBN | : |
Nonlinear Pricing with Average-price Bias
Author | : David Martimort |
Publisher | : |
Total Pages | : 28 |
Release | : 2019 |
Genre | : Consumers |
ISBN | : |
Empirical evidence suggests that consumers facing complex nonlinear pricing often make choices based on average (not marginal) prices. Given such behavior, we characterize a monopolist's optimal nonlinear price schedule. In contrast to the textbook setting, nonlinear prices designed for "average-price bias" distort consumption downward for consumers at the top, may produce efficient consumption for consumers at the bottom, and typically feature quantity premia rather than quantity discounts. These properties arise because the bias replaces consumer information rents with curvature rents. Whether or not a monopolist prefers consumers with average-price bias depends upon underlying preferences and costs.
Pricing, Demand Analysis and Simulation
Author | : Nadira Barkatullah |
Publisher | : Universal-Publishers |
Total Pages | : 216 |
Release | : 1999-03 |
Genre | : Business & Economics |
ISBN | : 1581120478 |
Recent changes in the New South Wales water utilities show a trend towards usage-related pricing, with the aim of providing efficient signals for consumption. This thesis evaluates alternative pricing strategies for water against the criteria of efficiency and equity while maintaining the financial viability of the public utility. First, the water utility cost structure is examined by developing cost functions to estimate short and long-run marginal costs, using a quarterly time-series data from 1970/71 to 1995/96. Second, a residential water demand model is developed using a panel data set (constructed for the analysis), comprising 822 cross-sectional units and 23 quarterly time periods from 1990/91 to 1995/96. The purposes of developing the demand model are to test the sensitivity of water demand to changes in the tariff structure and to use it to simulate the impact of alternative pricing strategies. Third, the simulation model is developed to analyse various pricing reforms using both the cost and demand model results, where the individual welfare and aggregate efficiency gains are determined under each pricing policy. In addition to this, the distributional effects of various tariff structures are examined. The empirical results of the cost structure estimates are comparable with previous studies. The demand estimation indicates that consumers respond to price, therefore price can be considered as a tool in the implementation of demand management strategies. However, the magnitude of the price elasticity suggests that substantial increases in price would be required to influence demand. Finally, the simulation results show that in the case of movement from the actual tariff structure to a two-part tariff policy (where the usage charge is equal to the short-run marginal cost), leads to highest efficiency gains.
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