Bargaining at Retail Stores: Evidence from Vienna

In the West, where posted prices are norm, it is uncommon to observe consumers receive discounts below price. Nevertheless, we find that when stores asked, a discount granted approximately 40% of time, with median percentage 10%. Discounts more likely be offered by small-scale firms, for higher-priced products, and nonsale items. More generally, differences in price delegation behavior across firm types serve as an indicator monitoring costs employee skills important drivers bargaining behavior. This paper was accepted Duncan Simester, marketing