Explaining why prices do not immediately adjust to business cycles remains one of the most important unresolved questions in macroeconomics. When researchers ask managers for an explanation, their responses reveal a reluctance to vary prices for fear of quot;antagonizing customers.quot; However,...

We analyze a model of a quality-constrained monopolist's product line decision that encompasses a variety of important examples of second-degree price discrimination, including intertemporal price discrimination, coupons, advance purchase discounts, versioning of information goods, and damaged...