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test standard decision theoretic predictions concerning purchasing behavior in a rebate and a discount scheme. We … switching to a linear pricing scheme is optimal. Our results indicate that rebate and discount schemes exert a significant …
Persistent link: https://www.econbiz.de/10014224223
Persistent link: https://www.econbiz.de/10003591198
by making an “exploding offer” (which permits no return once the consumer leaves) or by offering a “buy-now discount …
Persistent link: https://www.econbiz.de/10011524813
The antitrust law of bundled discounts is unsettled. LePage's broadly condemned bundled discounts instituted by a dominant firm where it appeared that the discounts served no economic purpose other than to place rival, single product suppliers at a competitive disadvantage. In contrast,...
Persistent link: https://www.econbiz.de/10013133122
We consider a monopolistic supplier’s optimal choice of wholesale tariffs when downstream firms are privately informed about their retail costs. Under discriminatory pricing, downstream firms that differ in their ex ante distribution of retail costs are offered different tariffs. Under uniform...
Persistent link: https://www.econbiz.de/10013315795
I discuss the impact of tying, bundling, and loyalty/requirement rebates on consumer surplus in the affected markets. I show that the Chicago School Theory of a single monopoly surplus that justifies tying, bundling, and loyalty/requirement rebates on the basis of efficiency typically fails....
Persistent link: https://www.econbiz.de/10014187801
This paper provides a comparative experimental study of risky prospects (lotteries) and income distributions. The … experimental design consisted of multi-outcome lotteries and n-dimensional income distributions arranged in the shapes of ten … response-mode effects, which cause inconsistent behavior between rating and valuation of lotteries and income distributions in …
Persistent link: https://www.econbiz.de/10010296309
products and frequently use multiple or exclusive rebate contracts to exercise market power. Based on a Hotelling model of … horizontal and vertical product differentiation, we examine the controversy whether there exists a superior rebate scheme as far … differentiation, we find that firms clearly prefer multiple over exclusive rebate contracts. Contrary, there exists no rebate form …
Persistent link: https://www.econbiz.de/10009510114
customer accedes to a bundled discount demand is hollow. Execution of such a threat would harm the monopolist, and harm it …
Persistent link: https://www.econbiz.de/10013141534
Recent health policy reforms try to increase consumer choice. We use a laboratory experiment to analyze consumers’ tastes in typical contract attributes of health insurances and to investigate their relationship with individual risk preferences. First, subjects make consecutive insurance...
Persistent link: https://www.econbiz.de/10010461931