Dynamic Nonlinear Pricing: biased expectations, inattention, and bill shock
نویسنده
چکیده
Recent research highlights the importance of biased expectations and inattention for nonlinear pricing in dynamic environments. Findings are: (1) Three-part tariffs, such as cellular service contracts, exploit consumer overconfidence. (2) Surprise penalty fees may be used to further exploit biased beliefs or alternatively to price discriminate more efficiently whenever consumers are inattentive. (3) Implementing the recent bill-shock agreement between cellular carriers and the FCC is predicted to harm rather than help consumers when endogenous price changes are taken into account.
منابع مشابه
Extended Research Statement ∗
My primary research interest concerns product pricing with market power. In some cases my research is motivated by observing perplexing pricing patterns and asking what about the environment, the objectives of sellers, or biases of customers can lead to such pricing? In other cases my motivation is reversed: I am intrigued by an interesting environment or regulatory intervention and ask what ar...
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