test standard decision theoretic predictions concerning purchasing behavior in a rebate and a discount scheme. We … switching to a linear pricing scheme is optimal. Our results indicate that rebate and discount schemes exert a significant …

customers (e.g. Efficient Consumer Response initiatives).The industry has only recently realized that current rebate practices … should be reconsidered and that rebate systems require a complete overhaul. Most importantly, rebate systems should be linked … to retail performance; a producer should only offer a rebate when a retailer delivers a specific service in return (e …