publication . Article . 1982

Nonlinear Pricing in Markets with Interdependent Demand

Shmuel S. Oren; Stephen A. Smith; Robert B. Wilson;
Open Access
  • Published: 01 Jan 1982 Journal: Marketing Science, volume 1, issue 3, pages 287-313
Abstract
This paper provides a mathematical framework for modeling demand and determining optimal price schedules in markets which have demand externalities and can sustain nonlinear pricing. These fundamental economic concepts appear in the marketplace in the form of mutual buyers' benefits and quantity discounts. The theory addressing these aspects is relevant to a wide variety of goods and services. Examples include tariffs for electronic communications services, pricing of franchises, and royalty fees for copyrighted material and patents. This paper builds on several previous results from microeconomics and extends nonlinear pricing to markets with demand externaliti...
Subjects
free text keywords: nonlinear pricing, demand externalities, telecommunication networks, Marketing, Business and International Management, Nonlinear pricing, Interdependence, media_common.quotation_subject, media_common, Goods and services, Externality, Economics, Industrial organization, Schedule, Microeconomics, Price structure, Variable pricing
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publication . Article . 1982

Nonlinear Pricing in Markets with Interdependent Demand

Shmuel S. Oren; Stephen A. Smith; Robert B. Wilson;