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Nonlinear Pricing with Product Customization in Mobile Service Industry
2011
Social Science Research Network
This paper proposes to incorporate product customization in the Maskin and Riley (1984) nonlinear pricing model in order to capture major features of mobile service data. In particular, consumers are characterized by a two-dimensional type. One dimension is observed by the provider and integrates product customization, while the other is a standard parameter of adverse selection, which is unobserved by the provider and makes it necessary for the provider to discriminate among consumers with
doi:10.2139/ssrn.1958072
fatcat:vx75mfpg6rcu7ksa44sygxty6e