Temptation, self-control, and competitive nonlinear pricing

Esteban, Susanna; Miyagawa, Eiichi

Temptation, self-control, and competitive nonlinear pricing

Author(s): Esteban, Susanna; Miyagawa, Eiichi

Publisher: Elsevier

Issued date: 2006

Citation: Economics Letters, (2006), 90 (3), p. 348-355

ISSN: 0165-1765

DOI: 10.1016/j.econlet.2005.08.028

Review: PeerReviewed

Publisher version: http://dx.doi.org/10.1016/j.econlet.2005.08.028

Keywords: Temptation , Self-control , Nonlinear pricing , Pooling; Participation fees

JEL Classification: D43 , L13 , L15

URI: http://hdl.handle.net/10016/4986

Abstract:

Standard pricing theories consider consumers without temptation. With temptation and costly self-control, consumers dislike choice sets with tempting alternatives. We study firms' strategy against such consumers, using Gul–Pesendorfer preferences and a game wh [+]

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