A strategy used by firms in industries such as wireless is to bundle several services into a service plan and administer a nonlinear price with different marginal prices for different usage levels. Moreover firms offer a menu of service plans targeting different consumer segments to implement...

Firms design quality-price pairs to satisfy heterogeneous consumers. Apart from the core product attributes consumers gain utility through other marketing mix variables such as advertising that is affective and evokes positive feelings. An interesting question is whether a firm should use such...

When consumers perceive that a firm's price or markup is unfairly high, they become less willing to purchase that firm's product. Hence, one might intuit that the existence of such fair-minded consumers would tend to induce firms to reduce their prices, lowering their profits and increasing the...

In this article, the authors offer a methodology to decompose the effects of price promotions into brand switching, stockpiling, and change in consumption by explicitly allowing for consumer heterogeneity in brand preferences and consumption needs. They develop a dynamic structural model of a...