This paper studies optimal nonlinear pricing for a monopolist when consumers' preferences exhibit temptation and self …-control as in Gul and Pesendorfer (2001a). Consumers are subject to temptation inside the store but exercise self-control, and … those foreseeing large self-control costs do not enter the store. Consumers differ in their preferences under temptation …

ideal product with temptation and commitment, if the firm positions a product close to the consumer’s temptation ideal …We study the implications for pricing strategies and product offerings of consumers’ temptation when the … differentiation of the product is horizontal. With horizontal differentiation, the temptation state is represented by a change in the …