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Customized temporal discounts are price cuts or coupons that are tailored by size, timing, and household to maximize profits to a retailer or manufacturer. The authors show how such discounts allow companies to optimize to whom, when, and how much to discount. Such a scheme allows firms to send...
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, not only because they can impair rival efficiency, but because loyalty discounts perversely discourage discounting even …
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efficiency, but also because loyalty discounts can perversely discourage discounting even when they have no effect on rival …
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In his recent paper entitled “How Loyalty Discounts Can Perversely Discourage Discounting,” Professor Einer Elhauge …
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