Unlocking Profit Potential: How Nonlinear Pricing Shapes Consumer Behavior
The article explores how companies use different pricing strategies to charge customers based on their willingness to pay. It looks at when it's profitable to offer discounts for buying more or bundling products together. The study also discusses how companies set prices for upgrades and add-on products. The researchers use market demand data to calculate these pricing strategies. They found that offering discounts can help companies make more money, especially when customers don't always make rational decisions. Additionally, companies can work together to create bundle deals that benefit both sellers and buyers.