Non-linear pricing and the exclusion of consumers |
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Authors: | Ben Lockwood |
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Institution: | University of London, London W1A 1PA, UK |
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Abstract: | We show that a monopolist practicing non-linear pricing may wish not to sell to an arbitrarily large fraction of the potential market (where this fraction is measured either in terms of the number of consumers, or of profits foregone if he were constrained to price linearly) in order to better discriminate among the remainder. |
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