Price Variation Antagonism and Firm Pricing Policies
نویسندگان
چکیده
Pricing schemes that vary prices in response to demand shocks may antagonize consumers and reduce demand. At the same time, consumers may take advantage of the opportunities offered by price changes. Overall, the net impact of varying price on demand is ambiguous. We investigate the issue empirically, exploiting a unique dataset from a firm that has experimented with different pricing schemes. Each scheme is characterized by how much prices respond to demand variations. Holding average price and other variables constant, we find that demand is higher when prices vary more. We discuss the implications of our findings with regard to the consumer antagonism hypothesis. JEL: D01, D12, L86.
منابع مشابه
Personalized Pricing and Quality Differentiation
We develop an analytical framework to investigate the competitive implications of personalized pricing (PP), whereby firms charge different prices to different consumers, based on their willingness to pay. We embed personalized pricing in a model of vertical product differentiation, and show how it affects firms’ choices over quality. We show that firms’ optimal pricing strategies with PP may b...
متن کاملAn Empirical Study of National vs. Local Pricing by Chain Stores under Competition
Geographic price discrimination is generally considered beneficial to firm profitability. However, theoretical results point to conditions under which firms might prefer to price uniformly across markets in oligopolistic settings. This paper provides an empirical analysis of competitive price discrimination and quantitatively assesses the profitability of national pricing relative to store-leve...
متن کاملA Game Theoretic Approach for Greening, Pricing, And Advertising Policies in A Green Supply Chain
In this paper, greening, pricing, and advertising policies in a supply chain will be examined with government intervention. The supply chain has two members. First, a manufacturer seeking to determine the wholesale price and the greening level and second, a retailer that has to determine the advertising cost and the retail price. The government is trying to encourage the manufacturer to green t...
متن کاملCompetitive Delivered Pricing by Mail-Order and Internet Retailers
Mail-order and internet sellers must decide how customers pay shipping charges. Typically, these sellers choose between two pricing policies: either “uniform pricing,” where the firm delivers to any customer at a fixed delivery charge (that may be volume dependent), or “mill pricing,” where the firm bills the customer a distance-related shipping charge. This paper studies price competition betw...
متن کاملStatic and Dynamic Pricing Of Excess Capacity in a Make- To-Order Environment
Recent years have seen advances in research and management practice in the area of pricing, and particularly in dynamic pricing and revenue management. At the same time, researchers and managers have made dramatic improvements in production and supply chain management. The interactions between pricing and production/supply chain performance, however, are not as well understood. Can a firm benef...
متن کامل