**Questions answered in this
chapter:**

What is linear pricing?

What is nonlinear pricing?

What is bundling, and how can it increase profitability?

How can I find a profit-maximizing nonlinear pricing plan?

**What is linear pricing?**

In Chapter 80, and Chapter 81, I show how to
determine a profit-maximizing price for a product. In those chapters’
examples, however, I make the implicit assumption that no matter how
many units a customer purchases, the customer is charged the same amount
per unit. This model is known as *linear pricing*
because the cost of buying *x* units is a straight
line function of *x;* namely, *cost of x
units=(unit price)*x*. You will see in this chapter that
*nonlinear pricing*

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