Structural Analysis of Nonlinear Pricing

S-Tier
Journal: Journal of Political Economy
Year: 2018
Volume: 126
Issue: 6
Pages: 2523 - 2568

Authors (3)

Yao Luo (University of Toronto) Isabelle Perrigne (not in RePEc) Quang Vuong (not in RePEc)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper proposes a new methodology for analyzing nonlinear pricing data. We establish identification of the model primitives with a known tariff and characterize the model restrictions on observables. We propose a quantile-based nonparametric estimator that achieves consistency at the parametric rate. We introduce unobserved product heterogeneity with an unknown tariff and show how our identification and estimation results extend. A Monte Carlo study analyzes the robustness of our methodology to menus of two-part tariffs. Analysis of cellular service data assesses the performance of various pricing strategies. We discuss extensions to network effects, multiproduct firms, bundling, differentiated products, and oligopolies.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/699978
Journal Field
General
Author Count
3
Added to Database
2026-01-25