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The present article discusses the economic and legal effects of single-product loyalty discounts. It is clear that … arguments concerning the "pro-competitive" effects of such discounts must be judged with skepticism. This applies in particular … to the assumed effects of loyalty discounts resulting from double profit surcharges or falling average costs, as well as …
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Credit card transactions cost American merchants six times as much as cash transactions. Why, then, do consumers pay the same price for purchases, regardless of the means of payment?The answer lies in a set of credit card network rules known as merchant restraints. Merchant restraints forbid...
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expenses into a fair price 4. Decide when to offer discounts …
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In recent times, pairs of retailers such as supermarket and retail gasoline chains have offered bundled discounts to … customers who buy their respective product brands. These discounts are a fixed amount off the headline prices that allied brands … arise although if both product sets are integrated, no bundled discounts are offered in equilibrium. …
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trade at economically significant discounts, unlike closed-end mutual fund shares. Although individual investors invest much …
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We use new data from the 2015 Diary of Consumer Payment Choice to analyze price discounts and surcharges based on the … cash discounts, after controlling for merchant category and dollar value of the transaction. Payment method choice is …. Both merchants’ reluctance to offer price discounts and consumers’ limited response to them lead to the low observed …
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