This article proposes a different pricing scheme for software companies targeting customers based on customers’ software efficacy. Normally, software companies optimize prices by charging a higher price on highly effective software users while charging a discount price on less effective software users (Varian’s versioning scheme). The pricing pattern could be reversed if network effect between ...

In this paper we study the coordination of the two-echelon supply chain using credit and quantity discount options. We determine the retail price, order quantity for the buyer, and the setup frequency, credit period for the supplier in four different scenarios (with or without coordination and with or without credit option). And we suggest a policy that incorporates both quantity discount and c...

While explicitly assuming that stock price conveys valuable information to the management, we show that the value loss from diversification is a function of the stock price informativeness. More informed stock trading leads to a more efficient investment and a smaller diversification discount. © 2007 Elsevier B.V. All rights reserved.

Ren-Raw Chen is a professor in the Finance Area of the Graduate School of Business Administration at Fordham University in New York, NY. [email protected] This article is motivated by the fact that the majority of securities in the financial markets are not frequently traded and hence a discount can be applied to properly ref lect such a deprived privilege. First, only a small fraction of corpo...

This paper examines how socio-economic status (SES) modifies how smokers adjust to changes in the price of tobacco products through utilization of multiple price minimizing techniques. Data come from the International Tobacco Control Policy Evaluation (ITC) Four Country Survey, nationally representative samples of adult smokers and includes respondents from Canada, the United States, the United...

This paper examines a sustainable supplier’s price discount strategy in competitive environment as it considers building two-level supply chain system consisting of two suppliers and single retailer under the condition uncertain demand, investigates impact suppliers’ on retailer’s expected profits. We find that profit increases increases. When only supplier offers discount, purchasing cost will...

In this paper, collusive price leadership in homogeneous good capacity-constrained repeated price competition is examined. In the stage game, firms choose their timing of price setting. Although setting a price early is disadvantageous per se, a large firm has an incentive to move early in order to demonstrate its commitment not to deviate. If the discount factor is not too large, this behavior...

This paper provides a new explanation of why price reductions take place on a regular basis. It is argued that the demand for a ...rm’s product drops over time because of the erosion of consumers’ brand recall, which in turn can be boosted by price cuts. After analyzing the dynamic optimal choice of price discounts in both monopoly and duopoly settings, I show that a monopolist’s optimal pricin...

Purpose – Studies on optimal discount levels have sometimes yielded contradictory results, leaving practitioners with unclear direction. This paper proposes clarifying the optimum discount levels. Design/methodology/approach – This study asked 453 consumers to choose their own optimal discount levels (from 0-80 percent) for eight product categories across two distribution channels (physical sto...

Objective: To examine the effectiveness of pricing strategies and promotion signs to stimulate healthier food purchases. Methods: A randomized controlled factorial design with three levels of price reduction (10%; 25%; and 50%) and three types of signs ('special offer', 'healthy choice' and 'special offer & healthy choice') on healthy foods was used. N=109 participants completed the experiment ...