Lu, Qiang; Moorthy, Sridhar - In: Marketing Science 26 (2007) 1, pp. 67-82
This paper examines a key difference between two promotional vehicles, coupons and rebates. Whereas coupons offer deals … uncertain redemption costs, this difference translates to a difference in when uncertainty is resolved. With coupons the … rebates are more efficient in surplus extraction but coupons offer more finetuned control over whom to serve. We identify the …