IDEAS home Printed from https://ideas.repec.org/a/bla/jemstr/v8y1999i4p523-544.html
   My bibliography  Save this article

Coupon Advertising Under Imperfect Price Information

Author

Listed:
  • José Luis Moraga-González
  • Emmanuel Petrakis

Abstract

This paper studies sales promotions through coupons in an oligopoly under imperfect price information. Sellers can distribute either ordinary coupons, or coupon (price) advertising, or both types of coupons, at distant locations to attract consumers from their rivals' markets. A unique symmetric pure-strategy equilibrium exists where rebates and couponing intensity are always positive. In the ordinary-coupon equilibrium, prices, promotional efforts, and sellers' profits are higher than in the coupon-advertising equilibrium. However, if sellers are allowed to distribute both types of coupons, only coupon advertising is sent out in equilibrium. Copyright (c) 1999 Massachusetts Institute of Technology.

Suggested Citation

  • José Luis Moraga-González & Emmanuel Petrakis, 1999. "Coupon Advertising Under Imperfect Price Information," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 8(4), pages 523-544, December.
  • Handle: RePEc:bla:jemstr:v:8:y:1999:i:4:p:523-544
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/servlet/useragent?func=synergy&synergyAction=showTOC&journalCode=jems&volume=8&issue=4&year=1999&part=null
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yuxin Chen & Sridhar Moorthy & Z. John Zhang, 2005. "Research Note---Price Discrimination After the Purchase: Rebates as State-Dependent Discounts," Management Science, INFORMS, vol. 51(7), pages 1131-1140, July.
    2. Galeotti, Andrea & Moraga-González, José Luis, 2008. "Segmentation, advertising and prices," International Journal of Industrial Organization, Elsevier, vol. 26(5), pages 1106-1119, September.
    3. Kutsal Dogan & Ernan Haruvy & Ram Rao, 2010. "Who should practice price discrimination using rebates in an asymmetric duopoly?," Quantitative Marketing and Economics (QME), Springer, vol. 8(1), pages 61-90, March.
    4. Qiang Lu & Sridhar Moorthy, 2007. "Coupons Versus Rebates," Marketing Science, INFORMS, vol. 26(1), pages 67-82, 01-02.
    5. Lola Esteban & Jose M. Hernandez & Jose Luis Moraga-Gonzalez, 2001. "Customer Directed Advertising and Product Quality," Tinbergen Institute Discussion Papers 01-099/1, Tinbergen Institute.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jemstr:v:8:y:1999:i:4:p:523-544. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www.kellogg.northwestern.edu/research/journals/JEMS/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.