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Returnable Goods: Refunds and Information Acquisition

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Author Info
Nicola Persico
Steven A. Matthews

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Abstract

We present two information-based rationales for why sellers of returnable goods tend to offer refunds in excess of the salvage value of the good. Both explanations require at least the potential presence of consumers who can choose to learn their values for the good prior to purchasing.

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Publisher Info
Paper provided by Econometric Society in its series Econometric Society 2004 North American Summer Meetings with number 537.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:nasm04:537

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Related research
Keywords: refunds; information acquisition; warranties; monopoly pricing;

Find related papers by JEL classification:
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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This page was last updated on 2009-11-6.


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