Cui, Tony Haitao; Raju, Jagmohan S.; Zhang, Z. John - In: Marketing Science 27 (2008) 5, pp. 779-795
Critics have long faulted the wide-spread practice of trade promotions as wasteful. It has been estimated that this practice adds up to $100 billion worth of inventory to the distribution system. Yet, the practice continues. In this paper, we propose a price discrimination model of trade...