Mixed linear-nonlinear pricing with bund
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Padmanabhan Srinagesh
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Article
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1991
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Springer US
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English
β 759 KB
The practice of setting marginal prices below marginal costs is so common in telecommunications offerings that it can justifiably be labeled a stylized fact. In this paper, we present a stylized model that establishes conditions under which this practice is economically efficient and profit-maximizi