Busse, Meghan R.; Zettelmeyer, Florian; Silva-Risso, … - 2021
Automobile manufacturers make frequent use of promotions that give cash-back payments. Two common types of cash …-back promotions are rebates to customers, which are widely publicized to potential customers, and discounts to dealers, which are not …-supplied surplus between dealer and customer depends on what price the two parties negotiate. These two types of promotions thus form a …