Exploiting exogenous variation in retail fuel prices from a temporary fuel tax discount in Germany, we estimate how the pass-through of the discount varies over space and time. We draw on daily gasoline prices of virtually all gas stations in Germany and neighboring France, with France serving...

We examine foreclosure discounts and their subsequent impact on investor returns in Berlin's housing market from 1984 to 2022. Utilizing hedonic regression models and matching techniques on a data set of housing transactions, we determine that foreclosure discounts, ranging from 20% to 50%, are...

Based on the export VAT rebate rate data from 2004 to 2015, this paper measures the uncertainty of Chinese export VAT rebate policy by using unexpected fluctuation of export VAT rebate rate, and finds that the index varies across products, years and industries. Then, the paper studies the...

This paper develops a novel theory linking quantity discounts to bargaining power in scenarios where retailers, organized as a trade association, negotiate uniform wholesale prices with suppliers. Our theory predicts that suppliers offer greater quantity discounts in regional markets where they...

Discount is the difference between the face value of a bond and its present value. I propose an arbitrage-free dynamic framework for discount models, which provides an alternative to the Heath–Jarrow–Morton framework for forward rates. I derive general consistency conditions for factor...

Contests are widely used as mechanisms to incentivize efforts in various contexts, from research innovation to athlete and employee performance. This paper presents a model suggesting that a contest with multiple prizes and a minimum effort requirement can be an effective way to promote...

Subscription programs, which offer customers access to exclusive benefits and discounts for a recurring membership fee, are experiencing a surge in popularity in the retail sector. Most new subscription programs are launched by retailers already offering their customers free loyalty programs...

For 181 million Americans not on Medicare or Medicaid but insured through their employer, labor union, or private insurance health plan, the primary restraints on pharmaceutical prices are pharmaceutical benefit managers (PBMs) who administer health plan drug benefits. PBMs use the aggregate...

The approved tax code amendments will cap a discount on Urals oil price to North Sea Dated for the calculation of oil taxes. By our estimates, amendments may bring an additional of around Rb640bn into the budget in 2023. However, the mechanism incorporated in the amendments entails the risk of a...

There are well-documented episodes for which prices remained at supracompetitive levels even after a cartel had been shut down by the competition authority. As long as market conditions remain reasonably stable, it is quite possible that collusive prices will still be incentive compatible so the...

Background: What are the cumulative influences of pricing, promotions of commodities, order size-based discount opportunities, and alternative warehousing scenarios on effective decision-making concerning inventory management? It is observed that the prices and promotion of products influence...

We study the efficacy of rebate rules in reward-based crowdfunding, where a project is only realized when a funding goal is met, and only those who pledge at least a reservation price receive a reward from the project. We propose and experimentally test two rebate rules against the customary...

An increasing number of construction projects are adopting prefabrication to economize on time, labor, and materials. This method calls for prudent supply chain management, because its performance relies on coordination between the contractor and supplier. Studies in construction management,...

We study the efficacy of rebates in reward-based crowdfunding, where a project is only realized when a funding goal is met, and only those who pledge at least a reservation price receive a reward. We propose and experimentally test two rebate rules against the all-or-nothing model. Firstly, we...

Purpose: The authors investigate the manufacturer's choice of discount schemes in a supply chain with competing retailers. Design/methodology/approach: Using a game-theoretic model, the authors build two discount frameworks and compare and analyze the effects of different discount schemes on the...

This paper studies the efficiency of the cryptocurrency market by looking at the distribution of bitcoin prices over time and across exchanges-currency pairs. We document persistent differences in relative bitcoin prices (or discounts), with a half-life of 1 day, and a distribution which is...

The COVID-19 outbreak continues to have a significant negative influence on the maritime supply chain even in the post-epidemic age. By incorporating the transportation resources into the maritime supply chain, the detrimental effects of the COVID-19 epidemic's introduction can be mitigated to...

We introduce a Generalized Nested Logit model of demand for bundles that can be estimated sequentially and virtually eliminates any challenge of dimensionality related to large choice sets. We use it to investigate quantity discounts for carbonated soft drinks by simulating a counterfactual with...

Drug copayment coupons to reduce patient cost-sharing have become nearly ubiquitous for high-priced brand-name prescription drugs. Medicare bans such coupons on the grounds that they are kickbacks that induce utilization, but they are commonly used by commercially-insured enrollees. We estimate...

Are consumers in the marketplace aware of their behavioral biases? Which biases can be profitably exploited by firms? I answer these questions in the context of a widely regulated form of price discrimination: rebates that require active redemption. I show theoretically how to recover...

Firms selling multiple products usually adopt bundle pricing in their marketing strategy for the purpose of extracting large consumer surplus. In this paper, we propose and analyze a bundling mechanism, referred to as component pricing with a bundle size discount (CPBSD), which sells bundles for...

Rising list prices are often used to illustrate the burden of prescription drug spending, but payers routinely negotiate rebates from manufacturers that generate differences between list and net prices. List prices are easily available and affect patient cost-sharing, but net prices are...

It is prevalent in many markets that customers are provided menus of tariffs with usage-dependent marginal prices. One instance of such nonlinear pricing scheme is additional payments on excess consumptions (e.g., overage charge, late fee, add-on charge for ancillary features or services)....

Carbon pricing policies worldwide are increasingly coupled with direct or indirect subsidies where emissions pricing revenues are rebated to the regulated entities. This paper analyzes the incentives created by two novel forms of rebating that reward additional emission intensity reductions: one...

An influential result in the literature on charitable giving is that matching subsidies dominate rebate subsidies in raising funds. We investigate whether this result extends to “unit donation” schemes, a popular alternative form of soliciting donations. There, the donors’ choices are over...

In this article, we propose rebate options with multi-step barriers, which is an extension of rebate options with a constant barrier. Despite the applicability and marketability of rebate options, there have been only a few research on obtaining analytical formulas. Accordingly, in this paper,...