Price-Matching Guarantees with Endogenous Consumer Search
نویسندگان
چکیده
منابع مشابه
Price-Matching Guarantees with Endogenous Search: A Market Experiment Approach
Price-matching guarantees are commonly used by sellers as promises to match the lowest price for an item that a customer can find elsewhere. n this paper, we use a market experiment approach to examine buyer search as well as sellers’ pricing decisions in the presence versus absence of rice-Matching Guarantees. We use student subjects as well as real consumers in an interactive laboratory setti...
متن کاملPrice Guarantees , Consumer Search , and Hassle Costs
The paper deals with the competitive effects of price guarantees in a spatial duopoly where consumers can search for lower prices but have to incur hassle costs if they want to claim a price guarantee. It is shown that symmetric equilibria with and without price guarantees exist but price guarantees will have no effect on prices if search costs are low, hassle costs are high and the number of u...
متن کاملResearch Note: Consumer Heterogeneity and Competitive Price-Matching Guarantees
Price-matching guarantees are widely used in consumer and industrial markets. Previous studies argue that they are a marketing tactic that facilitates implicit price collusion. This is because once a store adopts this marketing tactic, its rivals can no longer steal its customers by undercutting its price, and hence they have little incentive to initiate price cuts. While a store with price-mat...
متن کاملMinimum Price Guarantees in a Consumer Search Model
This paper is the first to examine the effect of minimum price guarantees in a sequential search model. Minimum price guarantees are not advertised and only known to consumers when they come to the shop. We show that in such an environment, minimum price guarantees increase the value of buying the good and therefore increase consumers’ reservation prices. This increase is so large that even aft...
متن کاملConsumer Search with Price Sorting∗
This paper introduces price sorting into a consumer search model. Either ascending or descending price sorting can be applied before the sampling process. Consumers search sequentially for products with two types of qualities. We allow a fraction of consumers to have zero search costs, and all other consumers have the same positive search cost. Price dispersion exists in the unique symmetric eq...
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ژورنال
عنوان ژورنال: Management Science
سال: 2017
ISSN: 0025-1909,1526-5501
DOI: 10.1287/mnsc.2016.2513