This paper uses an equilibrium model of multipart nonlinear pricing to determine the magnitude of foregone profits due to the implementation of simple tariff options. I then use the available information from a cross-section of independent cellular telephone markets to study how these foregone...

A particular tariff option is said to be foggy when another option or a combination of other tariff options offered by the same firm is always less expensive regardless of the usage profile of any customer. Alternatively tariff fogginess may refer to the whole set of tariff options and it is...

Liberalization of the European automobile distribution system in 2002 limits the ability of manufacturers to impose vertical restraints, leading to a substantial restructuring of the industry and increasing the competitive pressure among dealers. We estimate an equilibrium model of profit...

We present a flexible model of monopoly nonlinear pricing with endogenous participation decisions of heterogeneous consumers. We use computing intensive methods to fit the solution of this model to many nonlinear tariffs offered by incumbent monopolists in several early local U.S. cellular...

I study how firms actually compete in nonlinear tariffs by analyzing whether the incumbent and entrant’s decisions to offer a given number of tariff options are interrelated. The goal is to shed some light on those dynamic and strategic aspects of tariff menus that are currently ignored by...