Markdown as a pricing modality is ubiquitous in retail whereas everyday-low-price (EDLP) remains relatively rare (despite its several advantages, such as simplicity). Using a stylized model, we explore whether and why retailers can use either of these pricing modalities as an effective defense against a competitor entering the market with the alternative pricing modality to sell an identical pr...

We examine how the feasibility of both nonlinear pricing and exclusive dealing arrangements affect incentives for market foreclosure when two manufacturers contract with a retail monopolist. Surprisingly, we find that although market foreclosure equilibria exist, they are Pareto-dominated (from each manufacturer’s perspective) by all nonforeclosure equilibria. If one believes that Paretodominat...

Using real-time customer data holds great potential for the insurance industry. The frequency and relevance of interactions can be improved to provide assistance in real time. Better prevention risk management significantly improve pricing reduce losses. These changes, however, hold structural changes This research aims at understanding path development services challenges faced by insurers. A ...

This paper investigates the spatial organization and dynamics of retail markets using establishment level data on entry, exit, and location choice in the retail alcoholic beverage industry. Establishments are classi ̄ed into two groups based on ̄rm a±liation: chain vs. stand-alone stores. Stand-alone stores are further broken down into two categories according to product lines o®ered: diversi ̄ed...

The European banking industry joined forces to achieve a fully integrated market for retail payment services in the euro area: the Single Euro Payments Area (SEPA). Against this background, the present paper examines the fundamental relationship between retail payment business and overall bank performance. Using data from across 27 European markets over the period 2000-07, we analyse whether th...

The recent growth of Internet retail (e-retail) has attracted a great deal of attention in the academic literature and popular press. The future of e-retail is of interest for intellectual and practical reasons. Intellectually, e-retail provides nice opportunities to examine consumer and firm behavior. Practically, e-retail could have significant effects on the economy. It has grown steadily at...

This report was developed under a contract with the Small Business Administration, Office of Advocacy, and contains information and analysis that was reviewed and edited by officials of the Office of Advocacy. However, the final conclusions of the report do not necessarily reflect the views of the Office of Advocacy. This report was developed under a contract with the Small Business Administrat...

The apparel retail industry is on the one hand facing challenges from increasing competition, consolidations, and thus increasing pressure to reduce costs. On the other hand, customers are getting more demanding, resulting in shorter fashion cycles, and demands for new customer experience. RFID technology is supposed to raise efficiency and to enable innovative customer service offerings. Besid...

During the past decade, the retail banking industry started to face a set of radically new challenges that had an overall negative impact on industry margin and profitability. In response to these challenges, more and more retail banks have focused on increasing the scale of their operations, which has led to a rising importance of mergers and acquisitions (M&A). From a Marketing perspective, M...