Haan, Marco; Heijnen, Pim; Obradovits, Martin - 2021
retail prices, so consumers' purchase decisions may be influenced by them. Two firms compete by setting prices in a … observed each other's list price, they set retail prices. Building on the canonical Varian (1980) model, we assume that some … informed consumers use a simple rule of thumb, the use of list prices leads to lower retail prices on average. This effect is …