Working paper
Bundling, discounts across product lines and volume discounts in competitive markets: a prisoners' dilemma?
- Abstract:
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This paper analyses how competition over rebates for customer loyalty across product lines affects firms' pricing and consumers generally. If buyers incur firm specific costs or have shop specific tastes then competitive loyalty discounts lower consumer surplus overall and raise profits - the same is true of competitive volume discounts. Competition without these discounts causes all prices to be kept low as larger customers are targetted; with discounts the prices for heavy users drop, but m...
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- Publication status:
- Published
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Authors
Bibliographic Details
- Publisher:
- University of Oxford Publisher's website
- Series:
- Department of Economics Discussion Paper Series
- Publication date:
- 2004-10-01
- Paper number:
- 208
Item Description
- Keywords:
- Pubs id:
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1144225
- Local pid:
- pubs:1144225
- Deposit date:
- 2020-12-15
Terms of use
- Copyright date:
- 2004
- Rights statement:
- Copyright 2004 The Author(s)
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