There is strong empirical evidence that consumers discount at significantly higher rates than firms. Yet, most research abstracts from the effect of discount rates on marketing decisions such as pricing. We study the effects of a consumers' discount rate that is higher than a firm's discount...

In communication, information, and other industries, three-part tariffs are increasingly popular. A three-part tariff is defined by an access price, an allowance, and a marginal price for any usage in excess of the allowance. Empirical nonlinear pricing studies have focused on consumer choice...