Abstract: Compared with linear pricing, the advantages of nonlinear pricing in the area of social welfare have been proved repeatedly in the existing theory. While confirming that the nonlinear pricing can improve the social welfare, this paper points out that not all market entities can get a welfare improvement through nonlinear pricing. By establishing models to calculate and analyzes, we propose that“welfare deprivation”may be found in some specific market entities by the nonlinear pricing in the above mentioned two different kinds of situations, which may lead to the welfare redistribution effect.

Key words: nonlinear pricing; asymmetric duopoly market; welfare redistribution effect