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While retailers have sales data to forecast demand, manufacturers have a broad understanding of the market and the coming trends. It is well known that pooling such demand information within a distribution channel improves supply chain logistics. However, little is known about how...
Persistent link: https://www.econbiz.de/10008788226
We show that when a single media content distributor (such as a television cable company or an Internet provider) delivers advertising messages on behalf of multiple competing brands, it can sometimes utilize customized advertising to implement monopoly pricing. Even though such monopolistic...
Persistent link: https://www.econbiz.de/10008788326
In this paper, we extend the standard Hotelling model of product differentiation to incorporate a second dimension of consumer heterogeneity that relates to the quantity of the product consumers wish to buy. This extension allows us to derive optimal nonlinear pricing rules chosen by competing...
Persistent link: https://www.econbiz.de/10008789670