Article ID: | iaor20133940 |
Volume: | 206 |
Issue: | 1 |
Start Page Number: | 23 |
End Page Number: | 37 |
Publication Date: | Jul 2013 |
Journal: | Annals of Operations Research |
Authors: | Berg Kimmo |
Keywords: | complexity, optimal pricing |
This paper characterizes and enumerates the possible solution structures in nonlinear pricing problem when the number of buyer types is given. It is shown that the single‐crossing property, which is a standard assumption in the literature, reduces the complexity of solving the problem dramatically. The number of possible solution structures is important when the pricing problem is solved under limited information.