Online Appendix for 'Encroachment as an Enhancement or a Hindrance to Nonlinear Pricing'

Abstract

In section E.C.1, we show that the optimal separating solution always dominates the optimal pooling solution in our model. In section E.C.2, we present two extensions of our base model. In EC.2.1, we extend our model to a setting with a continuously distributed market size. We allow for the possibility that the development of encroachment capability allows the supplier to receive demand information through her direct channel in EC.2.2.The paper "Supplier Encroachment as an Enhancement or a Hindrance to Nonlinear Pricing" to which these Appendices apply is available at the following URL:http://ssrn.com/abstract=2118161