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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 book investigates the economic mechanisms and practical applications of nonlinear pricing structures across diverse industries. Robert B. Wilson, a prominent economist, utilizes his expertise to synthesize complex pricing models into a coherent framework. The text transitions from conceptual foundations to rigorous mathematical analysis, providing a comprehensive overview of how firms deviate from proportional pricing to optimize revenue and market efficiency. The study integrates theoretical economic principles with empirical observations to explain why nonlinear pricing is a prevalent strategy in modern commerce.
What You Will Find
Experts recognize this work as a foundational text for understanding the intersection of microeconomic theory and industrial pricing strategy. Readers frequently note the academic density of the prose, which requires a solid background in economics to fully grasp the technical derivations presented.
Page Count:
440
Publication Date:
1997-02-27
Publisher:
Oxford University Press
ISBN-10:
0195115821
ISBN-13:
9780195115826
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