Increased sales due to promotions could be at the expense of competitors: such sales come from consumers with relatively weak brand preferences. However, increased sales from brand loyal consumers could well cannibalize sales of the promoted brand. An unintended consequence of promotions is that...

Firms that must choose capacity in advance of observing uncertain or time varying demand sometimes have more inventory than their full price customers will consume. By pricing a limited quantity at below market clearing rates, “rationed promotions” allow sellers to recruit enough excess...

Casual observation suggests manufacturers continue offering trade promotions while complaining that trade promotions are unprofitable. Recent empirical work finds that retailer response to trade promotions can be better understood by viewing retailers as maximizing category profits rather than...

This paper is concerned with how retailers, supermarkets in particular, communicate price discounts and use unadvertised specials. A common practice for supermarkets is to communicate price deals on some products through newspaper advertisements, while communicating discounts on other products...