Take Action

Home | Faculty & Research Overview | Research

Research Details

Optimal Nonlinear Pricing and Contingent Contracts, International Economic Review

Abstract

Abstract: Nonlinear pricing is extended to allow for demand, cost, and capacity uncertainty. Incentive schedules are developed that implement the Pareto optimal allocation. Consumers choose a reference point, e.g., baseload demand. This determines both their payment level and the state-contingent output allocation. The approximate efficiency of alternative implementation procedures with discrete customer classes and with a linear prorated service rule is also examined. Copyright 1992 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Type

Article

Author(s)

Daniel Spulber

Date Published

1992

Citations

Spulber, Daniel. 1992. Optimal Nonlinear Pricing and Contingent Contracts. International Economic Review. 33(4): 747-772.

KELLOGG INSIGHT

Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more

COURSE CATALOG

Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.
LEARN MORE

DEGREE PROGRAMS

Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more

Take Action