All-units discounts (AUD) are pricing schemes that lower a buyer's marginal price on every unit purchased when the buyer's purchase exceeds or is equal to a pre-specified threshold. The AUD and related conditional rebates are commonly used in both final-goods and intermediate-goods markets....

We consider a nonlinear pricing problem faced by a dominant firm which competes with a capacity-constrained minor firm for a downstream buyer who may purchase the product from the firms under complete information. Specifically, we analyze a three-stage game in which the dominant firm offers a...

In many recent abuse of dominance antitrust cases, the dominant supplier adopts pricing schemes involving conditional rebates, whereas its smaller competitors often use simple linear pricing. We provide a game-theoretic justification for the observed asymmetry in pricing practices by studying a...

We consider bargaining problems with compact star-shaped choice sets arising from a class of economic bargaining environments. Convex or comprehensive (relative to the disagreement point) problems are star-shaped but not conversely. We characterize single-valued solutions satisfying the Nash...

We consider bargaining problems with compact star-shaped choice sets arising from a class of economic bargaining environments. Convex or comprehensive (relative to the disagreement point) problems are star-shaped but not conversely. We characterize single-valued solutions satisfying the Nash...

We present an exclusionary theory of all-units discounts schemes. These schemes offer a per-unit discount to all units purchased if the customer's purchase reaches a pre-specified quantity threshold. We demonstrate that when a dominant firm competes with a capacity-constrained rival, it is...