Teunter, Teunter, L.H.; Teunter, Teunter, R.H. - Faculteit der Economische Wetenschappen, Erasmus … - 2004
Price promotions induce consumers to purchase higher-than-usual quantities, resulting in higher stocks that lead to increased consumption. We show for a stylized model with a single shop and a single loyal customer that because of this stockpiling effect, promotions can be profitable even if...