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- Carlo Reggiani (2008): Oligopolistic Non-Linear Pricing and Size Economies
The effects of non-linear pricing are determined by the relationship between the demand and the technological structure of the market. This paper focuses on a model in which firms supply a homogeneous product in two different sizes. Information about consumers' reservation prices is incomplete and the production technology is characterized by size economies. Four equilibrium regions are identified depending on the relative intensity of size economies with respect to consumers' evaluation of a second unit of the good. The desirability of non-linear pricing varies across different equilibrium regions.
RePEc:yor:yorken:08/07 Save to MyIDEAS - Reggiani, Carlo (2011): Size (of the product) matters
Products get to the market in different sizes. Focusing on a model in which firms can supply and sell their product in a small or a large size and the production technology is characterized by size economies, insights are provided on the size of the products that one finds on the market. The size chosen by firms depends both on the characteristics of supply and demand but also on the pricing regime adopted by firms (linear vs. non-linear).
RePEc:eee:jebusi:v:63:y:2011:i:4:p:329-344 Save to MyIDEAS