Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2004:24: Profit Maximizing Nonlinear Pricing Revisited

Tommy Andersson ()
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Tommy Andersson: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden

Abstract: If the preferences of the consumers are represented by utility functions that are differentiable, quasi-linear and satisfy the single-crossing condition, the characteristics of the profit maximizing nonlinear outlay schedule for a monopolist are well-known. We demonstrate that these characteristics are robust against weaker assumptions on the utility functions

Keywords: Nonlinear Pricing; Monopoly

JEL-codes: D82; L12

6 pages, November 16, 2004

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Published as
Tommy Andersson, (2005), 'Profit Maximizing Nonlinear Pricing', Economics Letters, vol 88, pages 135-139

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