We ran a field experiment in a Dutch retail chain consisting of 128 stores. In a random sample of these stores, we introduced short-term sales competitions among subsets of stores. We find that sales competitions have a large effect on sales growth, but only in stores where the store's manager...

In diesem Beitrag wird ein Modell entwickelt, das die Wirkungen von Preis- und Nicht-Preis-Promotions auf die Markenloyalität von Konsumenten abbildet. Die Markenloyalitäts-Varia-ble von Guadagni/Little (1983) wird dabei dahingehend erweitert, daß die Änderung der Markenloyalität nach einem...

New Empirical Evidence on Price Setting and Consumer Behaviour in the Retailing Sector. There are two objectives of this article: (i) It is discussed theoretically how the dynamics of pricing decisions of multiproduct retailers can be explained. (ii) It is analyzed empirically by use of scanner...

Price promotions play a prominent role in German grocery retailing. Their purpose is to increase store traffic and strengthen customer loyalty. It is hypothesized that other marketing tools, like psychological pricing can add to the positive impact of price promotions on sales. Thus, we...

German food retailing is characterized by a strong price competition. Thus, we would expect the law of one price to hold and price adjustments to occur simultaneously. However, significant price differences can be observed which are often caused by sales. As price promotions are not related to...

The paper presents a model of a software monopolist who benefits from a lagged network externality arising from consumers' feedback through the so-called bug-fixing effect. That is, the software producer is able to correct errors in the software code detected by previous users, improving her...

Price-fixing is characterized when firms are concerned about creating suspicions that a cartel has formed. Antitrust laws have a complex effect on pricing as they interact with the conditions determining the internal stability of the cartel. Dynamics are driven by two forces - the sensitivity of...

This paper studies optimal nonlinear pricing for a monopolist when consumers' preferences exhibit temptation and self-control as in Gul and Pesendorfer (2001a). Consumers are subject to temptation inside the store but exercise self-control, and those foreseeing large self-control costs do not...

Standard methods in the U.S. for calculating antitrust damages in price-fixing cases is shown to create a strategic incentive for firms to price above the non-collusive price after the cartel has dissolved. This results in an overestimate of the but for price and an underestimate of the level of...

Price dynamics are characterized when a price-fixing cartel is concerned about creating suspicions of the presence of a cartel A dynamical extension of static models yields the counterfactual prediction that the cartel initially raises price and then gradually lowers it An alternative...