Mr. E. Price Evans

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Price Points in E-Commerce

Basu (2006) argues that the prevalence of 99 cent prices in shops can be explained with rational consumers who disregard the rightmost digits of the price. This bounded rational behaviour leads to a Bertrand equilibrium with positive markups. We use data from an Austrian price comparison site and find results highly compatible with Basu’s theory. We can show that price points in particular pric...

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99 Cent: Price points in e-commerce

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ژورنال

عنوان ژورنال: Nature

سال: 1960

ISSN: 0028-0836,1476-4687

DOI: 10.1038/185732a0