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Non-linear pricing is prevalent in many markets, from phone and electricity tariffs to supermarket items. Extensive literature studies non-linear pricing as a tool for surplus extraction, often as a device for price discrimination in the context of heterogeneous buyers. However, the contrast with linear pricing is particularly stark when consumers are homogeneous: in this case, the optimal non-linear pricing policy involves a monopolist selling the socially optimal quantity and extracting the
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- 2300520700021
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- EN