What do phone rates, frequent flyer programs, and railroad tariffs all have in common? They are all examples of nonlinear pricing. Pricing is nonlinear when it is not strictly proportional to the quantity purchased. The Electric Power Research Institute has commissioned Robert Wilson to review the various facets of nonlinear pricing. The work starts with a general non-mathematical discussion, followed by a more technical presentation intended for readers with a fairly advanced background. Thorough and detailed, this study has ample examples of case studies from a variety of industries.... this conclusion depends on an assumption that a customer bypasses service altogether if the net benefit is negative. ... As illustrated in As2 for Time, Newsweek, and EDF, most firmsa#39; tariffs specify prices that are constant over wide ranges.
|Author||:||Robert B. Wilson|
|Publisher||:||Oxford University Press on Demand - 1993|