A Generalized Model of Advertised Sales

To better understand temporary price reductions or “sales,” this paper presents a generalized “clearinghouse” framework of advertised sales and explores some applications. By viewing the firms as competing in utility amending conventional tiebreak rule, we allow for multiple dimensions firm heterogeneity complex market environments. Moreover, (i) provide original insights into number types that use sales, (ii) offer new results on how affects outcomes, (iii) extend common empirical “cleaning” procedure, (iv) analyze family activities markets, including persuasive advertising obfuscation. (JEL D21, D43, L13, L25, M37)