UNCERTAIN DEMAND, CONSUMER LOSS AVERSION, AND FLAT-RATE TARIFFS

• 成果类型: Article
• 署名作者: Herweg, Fabian; Mierendorff, Konrad
• 署名单位: University of Munich; University of Zurich
• 刊物名称: JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
• ISSN/ISSBN: 1542-4766
• DOI: 10.1111/jeea.12004
• 发表日期: 2013
• 页码: 399-432
• 关键词: reference-dependent preferences; local telephone service; self-control; prospect-theory; expectations; INFORMATION; patterns; DECISION; BEHAVIOR; MODEL

摘要

We consider a model of firm pricing and consumer choice, where consumers are loss averse and uncertain about their future demand. Possibly, consumers in our model prefer a flat rate to a measured tariff, even though this choice does not minimize their expected billing amounta behavior in line with ample empirical evidence. We solve for the profit-maximizing two-part tariff, which is a flat rate if (a) marginal costs are not too high, (b) loss aversion is intense, and (c) there are strong variations in demand. Moreover, we analyze the optimal nonlinear tariff. This tariff has a large flat part when a flat rate is optimal among the class of two-part tariffs.