Although the economic success of Amazon Prime has been widely reported in the mass media, few empirical studies have carefully quantified the economic value, consumer welfare impacts, or public policy implications of the subscription program. This study contributes to this economic literature by...

Strategy Question: How do I understand my customers’ “willingness to pay” for my products or services? Summary: We know our value proposition and what we are charging for our products or services. Are they in line? If not, a firm could be leaving money on the table on every sale, or...