A Cooperative Game Theory Model of Quantity Discounts

Quantity discounts offered by a monopolist are considered in the context of a bargaining problem in which the buyer and the seller negotiate over the order quantity and the average unit price. All-units and incremental quantity discounts that permit transaction at a negotiated outcome are described. The effects of risk sensitivity and bargaining power on quantity discounts are discussed for alternative bargaining models.

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Year of publication:	1989
Authors:	Kohli, Rajeev ; Park, Heungsoo
Published in:	Management Science. - Institute for Operations Research and the Management Sciences - INFORMS, ISSN 0025-1909. - Vol. 35.1989, 6, p. 693-707
Publisher:	Institute for Operations Research and the Management Sciences - INFORMS
Subject:	marketing: distribution \| marketing: pricing \| bargaining \| inventory/production: EOQ

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Extent:	application/pdf
Type of publication:	Article
Other identifiers:	10.1287/mnsc.35.6.693 [DOI]
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009218062