Product Line Design for a Distribution Channel
Marketing Science
Second Degree Price Discrimination for Information Goods under Nonlinear Utility Functions
HICSS '01 Proceedings of the 34th Annual Hawaii International Conference on System Sciences ( HICSS-34)-Volume 7 - Volume 7
Research Note---When Is Versioning Optimal for Information Goods?
Management Science
Product Variety and Capacity Investments in Congested Production Systems
Manufacturing & Service Operations Management
Using "last-minute" sales for vertical differentiation on the Internet
Decision Support Systems
Complementary Goods: Creating, Capturing, and Competing for Value
Marketing Science
Efficient Risk Hedging by Dynamic Forward Pricing: A Study in Cloud Computing
INFORMS Journal on Computing
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We consider a general model of monopoly price discrimination and characterize the conditions under which price discrimination is and is not profitable. We show that an important condition for profitable price discrimination is that the percentage change in surplus (i.e., consumers' total willingness to pay, less the firm's costs) associated with a product upgrade is increasing in consumers' willingness to pay. We refer to this as an increasing percentage differences condition and relate it to many known results in the marketing, economics, and operations management literatures.