In the supply-chain literature, an increasing body of work studies how suppliers can use incentive schemes such as quantity discounts to influence buyers’ ordering behaviour, thus reducing the supplier’s (and the total supply chain’s) costs. Various functional forms for such incentive schemes have been proposed, but a critical assumption always made is that the supplier has full information abo...

We consider a two node supply chain with a rational manufacturer–retailer pair, in which the retailer has private information that affects the nodes' reservation levels. Quantity discounts offered by the manufacturer is the mechanism we propose in order to achieve reduced costs for both supply chain nodes. We derive analytical expressions of the quantity discounts that minimize the manufacturer...

In an intertemporal setting in which individual uncertainty is resolved over time, advancepurchase discounts can serve to price discriminate between consumers with different expected valuations for the product. Consumers with a high expected valuation purchase the product before learning their actual valuation at the offered advance-purchase discount; consumers with a low expected valuation wil...

We consider loyalty discounts whereby the seller promises to give buyers who commit to buy from it a lower price than the seller gives to uncommitted buyers. We show that an incumbent seller can use loyalty discounts to soften price competition between itself and a rival, which raises market prices to all buyers. Each individual buyer’s agreement to a loyalty discount externalizes most of the h...

In recessions, the stock market falls more than in proportion to corporate profit. The discount rate implicit in the stock market rises. All types of investment fall, including employers’ investment in job creation. According to the leading view of unemployment—the Diamond-Mortensen-Pissarides model—when the incentive for job creation rises, the labor market tightens and unemployment falls. Emp...

When shops offer discounts, consumers are incentivised to acquire merchandise and/or services. So, it is also when merchants attempt expand their product distribution and boost sales increase profit margins. Unfortunately, may resort disingenuous fraudulent methods, such as announcing a fake or unreal discount sale. Since require adequate legal protection from harmful practices, Emirati French ...

According to the main international reports, more pervasive industrial and business-process automation, thanks machine learning advanced analytic tools, will unlock than 14 trillion USD worldwide annually by 2030. In specific case of pricing problems, which constitute class problems we investigate in this paper, estimated unlocked value be about 0.5 per year. particular, paper focuses on e-comm...