Purpose: Going beyond odd and even prices, this paper aims to explore the rationale behind the widespread practice of setting prices ending in “50” or “80” in the luxury industry. The authors argue that when they set such prices, managers agree to reduce their profit margin to limit the...

This paper aims to provide an answer to the question of out-of-stock events (OOS), their frequency, the sales losses they generate, and their causes. The authors provide two contributions. They describe a new sales-based measure of OOS computed on the basis of store-level scanner data and...