Sacco, Armando; Giovanni, Pietro De - 2021
retail price (MSRP) and 2) the minimum advertised price (MAP). With a MSRP, the retailer can engage in a price discount … policy to maintain control of the selling price. With a MAP, the manufacturer pays part of the retailer's advertising … expenses. Our results illustrate that when the consumer’s price sensitivity is lower than their advertising sensitivity, both …
