OBJECTIVE To examine tobacco company documents to determine what the companies knew about the impact of cigarette prices on smoking among youth, young adults, and adults, and to evaluate how this understanding affected their pricing and price related marketing strategies. METHODS Data for this study come from tobacco industry documents contained in the Youth and Marketing database created by ...

Generic medicine pricing is an area of national responsibility of European Union countries. This article aims to present the current status and impact of generic medicine pricing policies in ambulatory care in Europe. The study conducts a literature review of policies relating to free-pricing systems, price-regulated systems, price differentiation, price competition and discounts, and tendering...

A firm facing price dependent stochastic demand aims to maximize its total expected profit over a planning horizon. In addition to the regular unit selling price, the firm can utilize quantity discounts to increase sales. We refer to this dual-pricing strategy as quantity-based price differentiation. At the beginning of each period, the firm needs to make three decisions: replenish the inventor...

In this paper, I investigate the question of how a …rm producing substitutes should coordinate price promotions of these products. I model price competition between two …rms, each producing two products that are horizontally di¤erentiated with respect to some characteristic. Consumers are divided into loyals, who always purchase their preferred product, and switchers who have heterogeneous pref...

Sellers of almost any product or service rarely keep their prices constant through time, and frequently offer price discounts or sales. This paper investigates an explanation of sales as a way for uninformed consumers to be willing to experience the product, and learn about its fit, and where informed consumers may forget about (or change) their preferences. We investigate the role of the rate ...

We consider the dynamic pricing problem of a monopolist firm in a market with repeated interactions, where demand is sensitive to the firm’s pricing history. Consumers have memory and are prone to human decision making biases and cognitive limitations. As the firm manipulates prices, consumers form a reference price that adjusts as an anchoring standard based on price perceptions. Purchase deci...

Using a sample comprising nearly 250,000 weekly prices from the largest seven UK supermarket chains, this note investigates two pricing practices that have attracted public interest: the tendency for promotions to ‘disguise’ rises in non-sale prices and the inflation of prices prior to sales which ‘exaggerate’ the discount. Analysing price dynamics before and after periods of promotional discou...

This paper extends the literature on consumer reactions to future price changes to a new context – markets with substantial repeat purchase behavior – where the efficacy of common dynamic pricing strategies turns on the strength of these reactions. Utilizing the unique discount structure in automobile insurance, I am able to measure the extent to which consumers react to changes in the future p...

The main objective of this report is to describe a decision-support system for dynamic retail pricing and promotion planning. Our weekly demand model incorporates price, reference price effects, seasonality, article availability information, features and discounts. Building on previous research, we quantify demand interdependencies and integrate the resulting profitlifting effects into the opti...

To be the lowest bidders in procurement auctions, contractors commonly solicit subcontract bids at the bid preparation stage. A remarkable feature of the subcontract competition is that “winning is not everything”; the lowest subcontractor gets a job conditional on his contractor’s successful bid. This paper makes the first attempt to establish a model for such pre-award subcontract competition...