Nonlinear Pricing of Shareable Products
We consider a durable-goods monopolist who is able to control the collaborative consumption of its goods on an aftermarket by a sharing tariff. Consumers are heterogeneous with respect to their respective need propensities in each period. We show that the firm may be able to extract this private information by offering a nonlinear pricing scheme, which amounts to a menu of options that distinguish themselves by different combinations of retail price and sharing tariff, whereby the latter is charged to owners at the point of sharing their item with a nonowner on the sharing market. The solution, which is obtained using optimal control theory, critically depends on the product's durability.
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Weber, T. A. (2020). Nonlinear Pricing of Shareable Products. Proceedings of the 53rd Hawaii International Conference on System Sciences. 53rd Hawaii International Conference on System Sciences, Maui, Hawaii. https://doi.org/10.24251/HICSS.2020.737
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