We examine the indirect impact of price deals, which occurs through the formation of expected future prices, on households' purchase decisions. Two competing learning processes of households' formation of expected future deals that lead to opposite predictions are proposed. Under a...

We study the strategic impacts of behavioral price discrimination (BPD) on manufacturers and retailers in a distribution channel when there are switching costs in consumer demand. Unlike previous empirical studies of behavioral price discrimination, which rely only on differences in price...

Empirical examination of the pricing policies of brands in several categories reveals that the pricing distribution is multi-modal with firms offering shallow and deep discounts with varying frequencies. Another interesting feature of these pricing distributions is that the modes are in the...