Nonlinear Pricing and Misallocation

We would like to thank Scott Baker, Hugo Hopenhayn, Pete Klenow, Erik Madsen, Virgiliu Midrigan, Alessandro Pavan, Ivan Werning, and EAGLS, as well as participants at VMACS, IIES Macro Lunch, Stony Brook, Wharton Macro Lunch, World Bank Research Seminar, Insper, USC Marshall Macro Day, NYU Macro Lunch, MIT, UBC, Harvard, UT Austin, Barcelona Summer Forum, SED, the EFG at NBER SI, UCL, Columbia, Queen Mary University, LSE, the Minneapolis Fed, the Richmond Fed, UW Madison, EIEF, Michigan, the Atlanta Fed, and UCLA for insightful comments. The paper benefited from thoughtful discussions by Michael Peters, Kieran Larkin, and Joel David. We also thank Tanvi Jindal and Paige Stevenson, who provided excellent research assistance. Researchers’ own analyses calculated (or derived) based in part on data from Nielsen Consumer LLC and marketing databases provided through the NielsenIQ Datasets at the Kilts Center for Marketing Data Center at The University of Chicago Booth School of Business. The conclusions drawn from the NielsenIQ data are those of the researchers and do not reflect the views of NielsenIQ. NielsenIQ is not responsible for, had no role in, and was not involved in analyzing and preparing the results reported herein. The authors declare that they have no relevant or material financial interests that relate to the research described in this paper. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.