Luo, YaoPerrigne, IsabelleVuong, Quang2019-01-182019-01-182018Luo, Yao, Perrigne, Isabelle and Vuong, Quang. "Structural Analysis of Nonlinear Pricing." <i>Journal of Political Economy,</i> 126, no. 6 (2018) The University of Chicago Press: 2523-2568. https://doi.org/10.1086/699978.https://hdl.handle.net/1911/105104This paper proposes a new methodology for analyzing nonlinear pricing data. We establish identification of the model primitives with a known tariff and characterize the model restrictions on observables. We propose a quantile-based nonparametric estimator that achieves consistency at the parametric rate. We introduce unobserved product heterogeneity with an unknown tariff and show how our identification and estimation results extend. A Monte Carlo study analyzes the robustness of our methodology to menus of two-part tariffs. Analysis of cellular service data assesses the performance of various pricing strategies. We discuss extensions to network effects, multiproduct firms, bundling, differentiated products, and oligopolies.engArticle is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.Journal articlehttps://doi.org/10.1086/699978