Previous research has argued that, in the mature phase of competition, telecommunications networks may use access charges as an instrument of collusion. We show that this result depends totally on the assumption of linear pricing. Though under nonlinear pricing, the access charge alters the way...

This dissertation investigates the effect of market concentration on nonlinearpricing strategies in the airline industry. The study develops a theoretical nonlinearpricing model with both discrete product and consumer types to derive testable implications about the impact of market concentration...

This paper studies how a seller should design its price schedule when consumers' preferences are subject to temptation. As in Gul and Pesendorfer (2001),consumers exercise costly self-control to some degree and foresee their impulsivebehavior and self-control. Since consumers may pay a premium...

Thesis (Ph. D.)--University of Rochester. William E. Simon Graduate School of Business Administration, 2010.

We analyze a model of monopolistic price discrimination where only some consumers are originally sufficiently informed about their preferences, e.g., about their future demand for a utility such as electricity or telecommunication. When more consumers become informed, we show that this benefits...

An economy consisting of two different types of consumers and one publicly owned natural monopoly is under consideration. The preferences of the consumers are assumed to be linear in money and the demand curves are assumed not to cross. We also suppose that the net utility from consumption is so...

We consider nonlinear pricing policies that are designed by a social welfare maximizer who operates under a non-negative profit requirement. In our two-type economy, we characterize the set of all feasible nonlinear pricing policies and the frontier of the utility possibility set. Our results...

We report an experiment contrasting the impacts of a tax and a cap rule in a single-product market with two privately-informed buyers. We discuss the effects on choice set and consumer surplus. The policy environment varies across treatments. With regulations, we aim to halve the size of the...

For many services, consumers can choose among a range of optional tariffs that differ in their access and usage prices. Recent studies indicate that tariff-specific preferences may lead consumers to choose a tariff that does not minimize their expected billing rate. This study analyzes how...