Location

Grand Wailea, Hawaii

Event Website

https://hicss.hawaii.edu/

Start Date

7-1-2020 12:00 AM

End Date

10-1-2020 12:00 AM

Description

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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Jan 7th, 12:00 AM Jan 10th, 12:00 AM

Nonlinear Pricing of Shareable Products

Grand Wailea, Hawaii

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.

https://aisel.aisnet.org/hicss-53/os/sites/7