Dynamic nonlinear pricing: Biased expectations, inattention, and bill shock

► I review three recent papers concerning dynamic nonlinear pricing. ► Biased expectations and inattention effect pricing and regulation. ► Three-part tariffs, such as cellular contracts, exploit consumer overconfidence. ► Surprise penalty fees and consumer inattention can be socially valuable. ► The FCC's bill-shock agreement is predicted to harm rather than help consumers.