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This paper studies sales techniques which discourage consumer search by making it harder or more expensive to return to buy after a search for alternatives. It is unilaterally profitable for a seller to deter search under mild conditions, but sellers can suffer when all do so. When a seller...
Persistent link: https://www.econbiz.de/10011112637
unilaterally profitable for a seller to deter search under mild conditions, but sellers can suffer when all do so. In a monopoly …
Persistent link: https://www.econbiz.de/10011110164
unilaterally profitable for a seller to deter search under mild conditions, but sellers can suffer when all do so.  In a monopoly …
Persistent link: https://www.econbiz.de/10011004264
A common sales tactic is for a seller to encourage a potential customer to make her purchase decision quickly. We consider a market with sequential consumer search in which firms often encourage first-time visitors to buy immediately, either by making an "exploding offer" (which permits no...
Persistent link: https://www.econbiz.de/10008565120
We consider a market in which firms can partially observe each consumer's search behavior in the market. In our main model, a firm knows whether a consumer is visiting it for the first time or whether she is returning after a previous visit. Firms have an incentive to offer a lower price on a...
Persistent link: https://www.econbiz.de/10008543479
We consider a price discrimination problem in which a seller has a single object for sale to a potential buyer. At the time of contracting, the buyer's private type is his incomplete private information about his value, and the seller can disclose additional private information to the buyer. We...
Persistent link: https://www.econbiz.de/10010850109
Persistent link: https://www.econbiz.de/10009647384
We consider a market with sequential consumer search in which firms can distinguish potential customers visiting for the first time from returning visitors. We show that firms often have an incentive to make it costly for its visitors to return after investigating rivals, either by making an...
Persistent link: https://www.econbiz.de/10008468147
We study the relationship between competition and price discrimination through an empirical examination of hourly price schedules in the parking garage industry. We find that the degree of price schedule curvature decreases with competition, implying a greater proportionate drop in low-end...
Persistent link: https://www.econbiz.de/10011096404
We investigate the marketing practice of framing a price as a discount from an earlier price. We discuss two reasons why a discounted price---rather than a merely low price---can make a consumer more willing to purchase. First, a high initial price can indicate the product is high quality....
Persistent link: https://www.econbiz.de/10011083448