We have been witnessing the dual trend of retailers offering increasingly flexible consumer return policies and the rise in clearance sales and the number of off-price clearance channels. We model and connect these two trends by making salvage/clearance price endogenous and ask the question of...

Sellers of new products are faced with having to guess demand conditions to set price appropriately. But sellers are able to adjust price over time and to learn from past mistakes. Additionally, it is not necessary that all goods be sold with certainty. It is sometimes better to set a high price...

Temporary price reductions (sales) are common for many goods and naturally result in large increase in the quantity sold. We explore whether the data support the hypothesis that these increases are, at least partly, due to dynamic consumer behavior: at low prices consumers stockpile for future...

Retailers often offer price and quantity promotions to customers during clearance sales. In a price promotion, they offer discounted unit prices. In a quantity promotion, they usually offer a buy-one-get-one free (BOGO) or buy-two-get-one free (BTGO) policy. Under BOGO, customers buying one unit...

Clearance Sales figure as one of the crucial selling policies that business firms have. In a clearance sale, the selling price of the product takes with the fading of the fashion or the season, and allows the seller to official excess goods into the market. In the study, we undertook the study...

The market for corporate credit is characterized by significant seasonal variation, both in interest rates and the volume of new lending. Firms borrowing from banks during seasonal "sales" in late spring and fall issue at 19 basis points cheaper than winter and summer borrowers. Issuers during...