Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/92485 
Year of Publication: 
2013
Series/Report no.: 
CSIO Working Paper No. 0118
Publisher: 
Northwestern University, Center for the Study of Industrial Organization (CSIO), Evanston, IL
Abstract: 
This paper develops a model of nonlinear pricing of storable goods. We show that storability imposes novel constraints on a monopolist's ability to extract surplus. We then show that the attempt to relax these constraints can generate cyclical patterns in pricing and sales, even when consumers are homogeneous. Thus, the model provides a novel explanation for sales that does not rely on discriminating heterogeneous consumers. Enriching the model to allow for buyer heterogeneity in storage technology, delivers the prediction that larger bundles are more likely to be on sale.
Document Type: 
Working Paper

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