From B2B sales to AI-powered ecommerce, one common pricing mechanism is “list price - discount”: the seller first publishes a (committed) list price, then during interactions with a buyer, offers (non-committed) discounts off of the list price. Some B2B sellers never sell at their list...

Consider a family of SKUs for which the supplier will offer a quantity discount, according to the aggregate purchases of the product group. Management of those items is based on the modified periodic policy. From the supplier's point of view, what are the optimal parameters (breakpoint and...

This paper explores a monopolist's optimal multi-tier quantity-discount prices and shows that only the last tier's marginal cost is relevant in determining the tier prices and each tier's price is equal to its preceding tier's marginal revenue. An increase in total output is associated with...

Product sales and rentals often occur in parallel, allowing customers to choose their preferred option. In settings where consumers face significant valuation uncertainty, rentals also provide a mechanism for consumers to discover whether they like a product. For some products, such as movies...

The article reviews loyalty rebates, target rebates, exclusive dealing, and bundling, and argues that these are analogous practices that deserve similar competitive analyses and rules. In particular, in the case of all of these practices, at least some marginal units are typically sold below...

This article provides a tractable model of inter-temporal price-discrimination by heterogeneous firms, imperative for our understanding of advance purchase markets in the wake of entry. The pricing schedule of a more efficient entrant is found to differ systematically from the pricing schedule...

This article evaluates two different remedies for consumers who have been injured by a price overcharge on the sale of a good. Under a coupon remedy, injured consumers are awarded coupons that can be used for a limited period of time to purchase the good at a price below that which prevails...