Is Advance Selling Desirable with Competition?
نویسندگان
چکیده
منابع مشابه
Is Advance Selling Desirable with Competition?
It has been shown that a monopolist can use advance selling to increase profits. This paper documents that this may not hold when a firm faces competition. With advance selling a firm offers its service in an advance period, before consumers know their valuations for the firms’ services, or later on in a spot period, when consumers know their valuations. We identify two ways in which competitio...
متن کاملAdvance Selling for Services
Although some sellers have practiced advanced selling, the generality of its profit advantage is just now being realized. Further, recent development in technologies such as electronic tickets, smart cards, biometrics, and online prepayments now make it appropriate for nearly all services. Advance selling can improve profits for reasons very different from the traditional price discrimination e...
متن کاملLearning in Advance Selling with Heterogeneous Consumers∗
The advance selling strategy is implemented when a firm offers consumers the opportunity to order its product in advance of the regular selling season. Advance selling reduces uncertainty for both the firm and the buyer and enables the firm to update its forecast of future demand. The distinctive feature of the present study of advance selling is that we divide consumers into two groups, experi...
متن کاملAdvance Selling When Consumers Regret
W characterize the effect of anticipated regret on consumer decisions and on firm profits and policies in an advance selling context where buyers have uncertain valuations. Advance purchases trigger action regret if valuations turn out to be lower than the price paid, whereas delaying purchase may cause inaction regret from missing a discount or facing a stockout. Consumers whom we describe as ...
متن کاملThe Economics of Buyer Uncertainty: Advance Selling vs. Probabilistic Selling
Although Advance Selling and Probabilistic Selling differ in both motivation and implementation, we argue that they share a common characteristic—both offer consumers a choice involving buyer uncertainty. We develop a formal model to examine the general economics of purchase options that involve buyer uncertainty, explore the differences in buyer uncertainty created via these two strategies, an...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2013
ISSN: 1556-5068
DOI: 10.2139/ssrn.2275357