@article{35797fcad3af484baade74a4af5f32ac,
title = "Structural analysis of nonlinear pricing",
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.",
author = "Yao Luo and Isabelle Perrigne and Quang Vuong",
note = "Funding Information: for constructive comments. We also benefited from participants{\textquoteright} comments at the Stanford Institute for Theoretical Economics, Cowles Summer Conference, Econometric Society European Meeting, Latin American Meeting of the Econometric Society, Institute D{\textquoteright}{\'E}con-omie Industrielle Workshop on the Econometrics of Industrial Organization, North American Summer Meeting of the Econometric Society and seminars at California Institute of Technology, Carnegie Mellon University, Massachusetts Institute of Technology, New York University, Paris School of Economics, Simon Fraser University, University of Arizona, University of California at Davis, University of California at Los Angeles, University College London, University of Fortaleza, University of Maryland, University of Montreal, University of Southern California, and University of Wisconsin–Madison. Luo thanks the Networks, Electronic Commerce, and Telecommunications Institute (www.NETinst.org) and Social Science and Humanities Research Council grant 430-2016-00077 for financial support, while Perrigne and Vuong gratefully acknowledge financial support from the National Science Foundation through grant SES-1148149. Perrigne thanks the Department of Economics at New York University for financial support while revising this paper. Data are provided as supplementary material online. Publisher Copyright: {\textcopyright} 2018 by The University of Chicago. All rights reserved.",
year = "2018",
month = dec,
day = "1",
doi = "10.1086/699978",
language = "English (US)",
volume = "126",
pages = "2523--2568",
journal = "Journal of Political Economy",
issn = "0022-3808",
publisher = "University of Chicago",
number = "6",
}