Affine pricing

In economics, affine pricing is a situation where buying more than zero of a good gains a fixed benefit or cost, and each purchase after that gains a per-unit benefit or cost. In mathematical language, the price is an affine function (sometimes also linear function) of the quantity bought. An example would be a cell phone contract where a base pri...
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affine pricing

A pricing schedule where there is a fixed cost or benefit to the consumer for buying more than zero, and a constant per-unit cost per unit beyond that. Formally, the mapping from quantity purchased to total price is an affine function of quantity. Using, mostly, Tirole's notation, let q be the quantity in units purchased, T(q) be the total price pa...
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