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This paper examines the impact of the cashback mechanism on online merchants’ affiliate and pricing strategies. Through reimbursing a portion of the transactional amount to consumers in a form of cashback, merchants are able to practice second-degree price discrimination. We develop an...
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Through reimbursing a portion of the transactional amount to some consumers in a form of cashback, merchants are able to exercise third-degree price discrimination by offering two asymmetric prices via an online dual channel. To better understand such a novel pricing mechanism, we develop a game...
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Despite the increasing popularity of product sampling promotions in e-commerce, empirical research investigating its sales impacts and mechanism still lags. The objective of this paper, therefore, is to investigate the economic impact of online product sampling promotions on e-commerce...
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