Structural Analysis of Nonlinear Pricing

Yao Luo, Isabelle Perrigne and Quang Vuong
Additional contact information
Isabelle Perrigne: Rice University
Quang Vuong: NYU

Working Papers from Rice University, Department of Economics

Abstract: This paper proposes a methodology for analyzing nonlinear pricing data with an illustration on cellular phone. The model incorporates consumers exclusion. Assuming a known traffic, we establish identification of the model primitives using the first-order conditions of both the firm and the consumer up to a cost parameterization. Next, we propose a new one-step quantile-based non-parametric method to estimate the consumers inverse demand and their type distribution. We show that our nonparametric estimator is the square root of N-consistent. We then introduce unobserved product heterogeneity with an unknown tariff. We show how our identification and estimation results extend. Our analysis of cellular phone consumption data assesses the performance of alternative pricing strategies relative to nonlinear pricing.

Date: 2014-07
New Economics Papers: this item is included in nep-com, nep-ger and nep-mkt
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://economics.rice.edu/rise/working-papers/stru ... is-nonlinear-pricing
Our link check indicates that this URL is bad, the error code is: 406 Not Acceptable (http://economics.rice.edu/rise/working-papers/structural-analysis-nonlinear-pricing [301 Moved Permanently]--> https://economics.rice.edu/rise/working-papers/structural-analysis-nonlinear-pricing)

Related works:
Journal Article: Structural Analysis of Nonlinear Pricing (2018)
Working Paper: Structural Analysis of Nonlinear Pricing (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecl:riceco:14-003

Access Statistics for this paper

More papers in Working Papers from Rice University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ().