Nonlinear Pricing

Mark Armstrong

No 756, Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: Abstract I survey the use of nonlinear pricing as a method of price discrimination, both with monopoly and oligopoly supply. Topics covered include an analysis of when it is profitable to offer quantity discounts and bundle discounts, connections between second- and third-degree price discrimination, the use of market demand functions to calculate nonlinear tariffs, the impact of consumers with bounded rationality, bundling arrangements between separate sellers, and the choice of prices for upgrades and add-on products.

Keywords: Price discrimination; nonlinear pricing; bundling; product-line pricing; screening; discrete choice. (search for similar items in EconPapers)
JEL-codes: D11 D21 D42 D86 L13 M31 (search for similar items in EconPapers)
Date: 2015-09-10
New Economics Papers: this item is included in nep-com, nep-ind, nep-mic, nep-mkt, nep-ore and nep-reg
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Related works:
Journal Article: Nonlinear Pricing (2016)
Working Paper: Nonlinear Pricing (2015)
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