Zhao, Xuying; Pang, Zhan; Xiao, Wenqiang - 2016
. To encourage pre-orders, retailers such as Amazon offer pre-order price guarantee (PG). That is, if the product price … drops before or on the release date, pre-order consumers automatically receive a refund for the difference between the pre-order … price and the new price. We find that whether or not the retailer should offer pre-order PG depends on two factors: the …