Nonlinear Pricing

2009
Chapter

By: Raghuram Iyengar and Sunil Gupta

A nonlinear pricing schedule refers to any pricing structure where the total charges payable by customers are not proportional to the quantity of their consumed services. We begin the chapter with a discussion of the broad applicability of nonlinear pricing schemes. We... View Details

Keywords: Price; Demand and Consumers; Duopoly and Oligopoly; Monopoly; Service Operations; Research

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Article

When Talk Is "Free": The Effect of Tariff Structure on Usage Under Two- and Three-Part Tariffs

By: Eva Ascarza, Anja Lambrecht and Naufel Vilcassim

In many service industries, firms introduce three-part tariffs to replace or complement existing two-part tariffs. In contrast with two-part tariffs, three-part tariffs offer allowances, or “free” units of the service. Behavioral research suggests that the attributes... View Details

Keywords: Pricing; Nonlinear Pricing; Discrete/continuous Choice Model; Three-part Tariffs; Free Products; Price; Consumer Behavior; Analysis; Learning; Risk and Uncertainty

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March–April 2023
Article

Pricing for Heterogeneous Products: Analytics for Ticket Reselling

By: Michael Alley, Max Biggs, Rim Hariss, Charles Herrmann, Michael Lingzhi Li and Georgia Perakis

Problem definition: We present a data-driven study of the secondary ticket market. In particular, we are primarily concerned with accurately estimating price sensitivity for listed tickets. In this setting, there are many issues including endogeneity, heterogeneity in... View Details

Keywords: Price; Demand and Consumers; AI and Machine Learning; Investment Return; Entertainment and Recreation Industry; Sports Industry

09 Mar 2016
HBS Seminar

Katja Seim of The Wharton School, University of Pennsylvania

November 2007
Article

A Model of Consumer Learning for Service Quality and Usage

By: Raghuram Iyengar, Asim Ansari and Sunil Gupta

In many services, e.g., the wireless service industry, consumers choose a service plan based on their expected consumption. In such situations, consumers experience two forms of uncertainty. First, consumers may be uncertain about the quality of their service provider... View Details

Keywords: Experience and Expertise; Customer Value and Value Chain; Learning; Price; Knowledge Use and Leverage; Marketing Strategy; Consumer Behavior; Service Delivery; Quality; Risk and Uncertainty; Service Industry

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December 1989
Article

On the Consistency of Short-Run and Long-Run Exchange Rate Expectations

By: K. A. Froot and T. Ito

This paper examines whether short-term exchange rate expectations 'overreact' by comparing them with long-term expectations. We develop a set of nonlinear restrictions linking expectations at different forecast horizons. The restrictions impose consistency, a property... View Details

Keywords: Currencies; Exchange Rates; International Macroeconomics; Monetary Policy; Currency Controls; Fixed Exchange Rates; Floating Exchange Rates; Currency Bands; Currency Zones; Currency Areas; Rational Expectations; Asset Pricing

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26 Apr 2011
First Look

First Look: April 26

examine a prominent justification for capital income taxation: goods preferred by those with high ability ought to be taxed. In an environment where commodity taxes are allowed to be nonlinear functions of income and consumption, we... View Details

Keywords: Sean Silverthorne

25 Aug 2003
Research & Ideas

Why IT Does Matter

extraordinary robustness and have permitted the survival of otherwise doomed organizations. Evaluating these opportunities as well as thinking through their implications and timing, is vitally important, nonboring work. The new technologies will allow new things to be... View Details

Keywords: by F. Warren McFarlan & Richard L. Nolan

29 Jan 2013
First Look

First Look: Jan. 29

Publication:Journal of Public Economics Abstract We examine a prominent justification for capital income taxation: goods preferred by those with high ability ought to be taxed. In an environment where commodity taxes are allowed to be View Details

Keywords: Sean Silverthorne

16 Jul 2021
Op-Ed

For Entrepreneurs, the Benefits of Slowing Down

with all the execution demands and details involved, it is hard to take the time to be creative. Take the time this summer to do some offsites (yes, in person!) and brainstorm with your teams regarding the nonlinear growth opportunities... View Details

Keywords: by Jeffrey Bussgang

21 Apr 2009
First Look

First Look: April 21, 2009

research that provides customer-based valuation of firms and suggest directions for future research. Nonlinear Pricing Authors:Raghuram Iyengar and Sunil Gupta Publication:In Handbook of View Details

Keywords: Martha Lagace

01 Sep 2015
First Look

First Look -- September 1, 2015

given year. We provide a partial explanation for this statistic: a foreign aid windfall to poor, non-oil producing Muslim countries during the twin oil crises of the 1970s allowed the recipient states to become more repressive and stave off rebellion. When oil View Details

Keywords: Sean Silverthorne

11 Jan 2011
First Look

First Look: Jan. 11

the recipient would accept a low price in exchange for a side payment and selected larger numbers as their best guess of the likely proportion of recipients acting "unfairly." The results favor the hypothesis that people avoid... View Details

Keywords: Sean Silverthorne

15 Jan 2008
First Look

First Look: January 15, 2008

specialize in different stages of a complex production process. This paper considers the pricing behavior and profitability of these so-called modular clusters. In particular, we investigate a possibility hinted at in prior work: that for... View Details

Keywords: Martha Lagace

21 Aug 2018
First Look

New Research and Ideas, August 21, 2018

horizons. We also demonstrate that nonlinear boosting models with feature selection, such as random forests, perform significantly better than traditional linear models. The best-performing method (random forest) yields an out-of-sample... View Details

Keywords: Dina Gerdeman

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