This dissertation studies a firm's optimal nonlinear pricing strategies in the wireless industry. There are four chapters in this dissertation. The first chapter gives an introduction about this dissertation. One strategy used by firms in industries such as wireless is to bundle several services into a menu of service plan and offer the plan under a three-part tariff pricing. To explore the profit impact of these service plans I need to understand consumer choices. To achieve this goal, in the second chapter I develop a structural model of consumer' choice of service plans and usage decisions. I find consumer preferences for the two services are positively correlated. The current service plans are not optimal, perhaps due to incorrect customer segmentation by the firm. Pricing experiments based on estimated consumer preferences suggest that the firm should offer one plan targeting heavy users and another plan targeting light users, as either a replacement for or in addition to current plans.The example that I use for this analysis is the wireless industry. ... purpose of distinguishing different pricing schemes the three-part tariff I refer to in the later part of the paper restricts the free usage level and marginal price to be both positive.
|Title||:||Empirical and Analytical Analysis of Nonlinear Pricing Strategies. Essay I: Product Bundling Under Three-part Tariffs. Essay II: Optimal Three-part Tariff Pricing|
|Publisher||:||ProQuest - 2008|