Promotional tools such as rebates and coupons are usually seen as different ways of price discriminating among consumers. We focus on a different property of rebates: their ability to price discriminate within a consumer among her postpurchase states. Unlike price discrimination between...

In this paper we explore the relations among advertising spending, capacity and quality for services. Data from a sample of New York City restaurants show that mid-quality restaurants spend more on advertising than either high quality or low quality ones, contradicting the usual Nelson-type...

In this paper we study how performance requirements may improve the working of a distribution channel when the retailer is better informed about demand conditions than the manufacturer. Performance requirements means that the manufacturer and retailer agree to (1) have the manufacturer set...