In many settings where pricing is delegated to salespeople, firms provide the salespeople incentives to not only sell more, but also to do so at higher prices. In this paper, we study the relative importance of pricing-focused and revenue-focused incentives, and quantify the profitability of...

Retailers routinely post two prices on the price tag - a posted or sale price, and a higher regular or an advertised reference price. Together, these prices create a perception of an initial discount that the consumer is getting. In this paper, we investigate the impact of this initial perceived...