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

• Main Author: Lim, Dickson A.
• Format: text
• Published: Animo Repository 2012
• Subjects: Nonlinear pricing; Restaurant management; Adverse selection (Insurance); Game theory; Economics
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/1432
• Institution: De La Salle University

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 segmen...