This study compares prices offered by multiple Internet retailers. This task is challenging because e-tailers cannot present their entire assortments to each consumer. Therefore, the quality of the product assortments presented by different e-tailers to each consumer is not directly comparable on an item-by-item basis, resulting in nonhomogeneous offerings across retailers. We further consider ...

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...

The usual analysis of monopolistic markets focuses merely on the seller ́s behavior. In this paper, we interpret the relationship between seller and buyers as a multiple Ultimatum Bargaining Game. We show that a profit maximizing monopolist may not sell at Cournot Price. When buyers are committed to reject price offers leading to an unfair split of the surplus, a monopolist will have to reduce t...

SESSION OVERVIEW tt is widely accepted that price evaluations involve some form of comparisons. That is, when faced with a stimulus price, the consumer evaluates that price by comparing it with some form of comparison standard. This comparison standard is often referred to "reference price." Two basic forms of comparison standards have been proposed in the pricing literature: Internal reference...

Assuming consumers choose retailers based on their average price perceptions, previous research examined how different retailer pricing strategies (frequent discounting, deep discounting and everyday low pricing) influence these perceptions. In these studies, participants typically viewed competing retailer's product prices over multiple trials that simulated multiple shopping occasions. Then, ...

We develop a model in which a profit-maximizing monopolist with uncertain cost of production sells to loss-averse, yet rational, consumers. We first introduce (portable) techniques for analyzing the demand of such consumers, and then investigate the monopolist’s pricing strategy. Compared to lower possible purchase prices, paying a higher price in the firm’s pricing distribution is assessed by ...