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Author:Sibley, D.
Spinagesh, P.
Title:Multiproduct nonlinear pricing with multiple taste characteristics
Journal:RAND Journal of Economics
1997 : WINTER, VOL. 28:4, p. 684-707
Index terms:MULTIPRODUCT COMPANIES
PRICING
ECONOMICS
Language:eng
Abstract:The authors analyze optimal multiproduct nonlinear prices in the case where consumer tastes are characterized by more than one taste parameter. They present conditions under which the optimal nonlinear price schedule can be computed by finding optimal price schedules separately for each market. If so, they are unbundled. If not, they are bundled. Bundling is weakly superior to unbundling and is strictly superior when a condition termed uniform ordering of demand curves is weakly violated.
SCIMA record nr: 177169
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