All-units discounts in retail contracts refer to discounts that lower a retailer’s wholesale price on every unit purchased when the retailer’s purchases equal or exceed some quantity threshold. These discounts pose a challenge to economic theory because it is difficult to understand why a manufacturer ever would charge less for a larger order if its intentions were benign. In this paper, we sho...

BACKGROUND The UK has traditionally had strong proxy demand-side measures favouring generic drug use, including prescribing guidance, financial incentives and encouraging generic prescribing. At distribution level, pharmacies are paid a salary for their dispensing work, based on volume dispensed, and procure generic products on the basis of discounts given to them by manufacturers or wholesaler...

In recent years, per capita pork consumption in Canada has trended downward, while consumption of chicken and beef has remained relatively stable. One way the industry can respond to declining consumption is by investing in a promotional activity such as discounting. FARE researchers examined the effects of different types of discounts on the demand for pork products in Canada. The study used d...

In this paper we investigate experimentally if people search optimally and how price promotions in‡uence search behavior. We implement a sequential search task with exogenous price dispersion in a baseline treatment and introduce discounts in two experimental treatments. We …nd that search behavior is roughly consistent with optimal search but also observe some discount biases. If subjects don’...

Objective: The study aimed to survey price reductions such as discounts and rebates granted for medicines used

Answers how much to order when to order. Reduced price when item is purchased in larger quantities.The first model we will present is called the economic order quantity EOQ. We will discuss two types of quantity discount contracts: all units discounts and.buy the lowest total cost quantity, save the buyer money and, in some cases, receive more goods. quantity discount model example When we buy ...

BACKGROUND Two strategies commonly recommended to improve population diets include food labels and food taxes/subsidies. The aim of this study was to examine the effects of both strategies separately and in combination. FINDINGS An experiment with a 3x3 factorial design was conducted, including: three levels of price reduction (10%; 25%; and 50%) x three labels ('special offer', 'healthy choi...

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...

Previous research in the area of price discounts has generated a rich, but diverse and mixed body of literature. This research examines the role of consumer’s brand commitment and product category risk in influencing the nature as well as valence of the inferences generated by consumers in response to price discounts. Our results provide insights regarding how consumers’ responses to competitor...

the study investigates consumers’ preference for cowpea reflected in the nigerian markets through price discounts and premiums that consumers pay for different cowpea characteristics. the price data used for this study were obtained through a market survey. a common data collection protocol was employed. every month, between october 2009 to december 2010, five cowpea samples per seller were bou...