This study compares prices offered by multiple Internet retailers. This task is challenging because e-tailers cannot present their entire assortments to each consumer. Therefore, the quality of the product assortments presented by different e-tailers to each consumer is not directly comparable on an item-by-item basis, resulting in nonhomogeneous offerings across retailers. We further consider ...

The Internet has radically reduced the cost of collecting and distributing information. Consequently, researchers initially predicted that the resulting price transparency would drive prices toward a single market price. However, this has largely not happened, partly because retailers use shipping costs to make prices less comparable. Using data on 517,048 offers of 895 retailers from a leading...

This paper analyzes regulatory intervention when firms exploit consumers who are myopic in their decision making. As shown by Gabaix and Laibson (2006), a potential equilibrium price strategy of firms involves excessively high-priced add-ons and shrouding of add-on prices, which leads to a social welfare loss and consumer protection problems. Our model introduces a price discrimination equilibr...

one of the main principles of resistance economy, is to support domestic production and limiting imports, especially in sectors where there is the possibility of import-substituting production .this requires adjustment of exact trade policies,and to achieve this, identifying the structure of imports demand function and also price and income elasticity of import demand is necessary.this necessit...

Media providers frequently have to trade-off revenues from advertisers and subscribers. However, with contemporary electronic media, such as Internet websites, there exists the possibility of giving viewers of the same program the option to pay a higher price and view fewer advertisements, or pay a lower price but view more advertisements. With heterogeneous consumers, there will be some takers...

Prices for similar products often differ between retail outlets, leading consumers to actively search for products that meet their needs at the lowest possible price. Prices differ among retailers, and search intensity differs among consumers because search is a costly activity and consumers differ in their costs of search. How variety and the multiproduct nature of retailing affect search cost...

This paper studies how a seller should design its price schedule when consumers’ preferences are subject to temptation. As in Gul and Pesendorfer (2001), consumers exercise costly self-control to some degree and foresee their impulsive behavior and self-control. Since consumers may pay a premium for an option set that is less tempting, the seller may offer multiple small menus. Building on the ...

Trade promotions are temporary price cuts that manufacturers offer retailers to encourage them to reduce retail prices. While trade promotion spending as a percentage of marketing budget has increased dramatically, the inefficiency of trade promotion represents the ‘‘number-one concern’’ among manufacturers, as indicated by recent trade surveys. At the heart of this dissatisfaction lies manufac...

Price discrimination is the practice of charging different consumers different prices for the same good, where the price difference cannot be accounted for by differences in cost. The ability to price discriminate enables a seller to charge buyers prices that more closely approximate their willingness-to-pay for the item. By price discriminating, sellers are able not only to maximize their own ...

The perishable product’s dynamic pricing with quantity discount strategy is studied. The seller uses two-period dynamic price during the whole sale period and introduces quantity discount in second sale period in order to improve the seller’s profit. The mathematic model expressions are obtained by assuming that consumer’s reservation price draws from a uniform distribution and the price discou...