Analyzing the nonlinear pricing strategy of Cibo using an adverse selection game theory model

Authors

Dickson A. Lim, De La Salle University, Manila

College

Ramon V. Del Rosario College of Business

Department/Unit

Economics

Document Type

Article

Source Title

DLSU Business and Economics Review

Volume

21

Issue

2

First Page

109

Last Page

112

Publication Date

12-1-2012

Abstract

With the inability of Cibo to correctly identify their patrons of which segment or type they are, a nonlinear pricing scheme was developed by the restaurant in the form the La Familia option. The La Familia option is a price discrimination strategy that attempts to extract surplus from either segment or type; but due to adverse selection, the product offering exhibits distortion to one of the segment or type. © 2012 De La Salle University, Philippines.

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Recommended Citation

Lim, D. A. (2012). Analyzing the nonlinear pricing strategy of Cibo using an adverse selection game theory model. DLSU Business and Economics Review, 21 (2), 109-112. Retrieved from https://animorepository.dlsu.edu.ph/faculty_research/1432

Disciplines

Economics

Keywords

Nonlinear pricing; Restaurant management; Adverse selection (Insurance); Game theory

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