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The loss leader is a turkey: Targeted discounts from multi-product competitors

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  • DeGraba, Patrick
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    File URL: http://www.sciencedirect.com/science/article/pii/S0167-7187(05)00138-4
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    Article provided by Elsevier in its journal International Journal of Industrial Organization.

    Volume (Year): 24 (2006)
    Issue (Month): 3 (May)
    Pages: 613-628

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    Handle: RePEc:eee:indorg:v:24:y:2006:i:3:p:613-628
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505551

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    1. Glenn Ellison, 2003. "A Model of Add-on Pricing," NBER Working Papers 9721, National Bureau of Economic Research, Inc.
    2. Christopher M. Snyder, 1996. "A Dynamic Theory of Countervailing Power," RAND Journal of Economics, The RAND Corporation, vol. 27(4), pages 747-769, Winter.
    3. Suchan Chae & Paul Heidhues, 1999. "Bargaining Power of a Coalition in Parallel Bargaining: Advantage of Multiple Cable System Operators," CIG Working Papers FS IV 99-01, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    4. DeGraba, Patrick, 1995. "Characterizing Solutions of Supermodular Games; Intuitive Comparative Statics, and Unique Equilibria," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 5(1), pages 181-188, January.
    5. Judith A. Chevalier & Anil K. Kashyap & Peter E. Rossi, 2003. "Why Don't Prices Rise During Periods of Peak Demand? Evidence from Scanner Data," American Economic Review, American Economic Association, vol. 93(1), pages 15-37, March.
    6. Elizabeth J. Warner & Robert B. Barsky, 1995. "The Timing and Magnitude of Retail Store Markdowns: Evidence from Weekends and Holidays," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 321-352.
    7. James D. Hess & Eitan Gerstner, 1987. "Loss Leader Pricing and Rain Check Policy," Marketing Science, INFORMS, vol. 6(4), pages 358-374.
    8. Stole, Lars A & Zwiebel, Jeffrey, 1996. "Organizational Design and Technology Choice under Intrafirm Bargaining," American Economic Review, American Economic Association, vol. 86(1), pages 195-222, March.
    9. Tasneem Chipty & Christopher M. Snyder, 1999. "The Role Of Firm Size In Bilateral Bargaining: A Study Of The Cable Television Industry," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 326-340, May.
    10. MacDonald, James M, 2000. "Demand, Information, and Competition: Why Do Food Prices Fall at Seasonal Demand Peaks?," Journal of Industrial Economics, Wiley Blackwell, vol. 48(1), pages 27-45, March.
    11. Snyder, Christopher M., 1998. "Why do larger buyers pay lower prices? Intense supplier competition," Economics Letters, Elsevier, vol. 58(2), pages 205-209, February.
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    Cited by:

    1. P. J. Glandon & Matthew Jaremski, 2014. "Sales and Firm Entry: The Case of Wal-Mart," Southern Economic Journal, Southern Economic Association, vol. 81(1), pages 168-192, July.
    2. Chen, Zhijun & Rey, Patrick, 2013. "Competitive Cross-Subsidization," IDEI Working Papers 808, Institut d'Économie Industrielle (IDEI), Toulouse.
    3. Lahmandi-Ayed, Rim, 2010. "Spatial differentiation, divisible consumption and the pro-competitive effect of income," Journal of Mathematical Economics, Elsevier, vol. 46(1), pages 71-85, January.
    4. Witness Simbanegavi, 2008. "Loss leader or low margin leader? Advertising and the degree of product differentiation," Working Papers 105, Economic Research Southern Africa.
    5. Shelegia, Sandro, 2012. "Multiproduct pricing in oligopoly," International Journal of Industrial Organization, Elsevier, vol. 30(2), pages 231-242.
    6. Antonio Rosato, 2016. "Selling substitute goods to loss-averse consumers: limited availability, bargains, and rip-offs," RAND Journal of Economics, RAND Corporation, vol. 47(3), pages 709-733, 08.
    7. Ersoy, Fulya Yuksel & Hasker, Kevin & Inci, Eren, 2016. "Parking as a loss leader at shopping malls," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 98-112.
    8. Noriaki Matsushima & Akira Miyaoka, 2013. "Who benefits from resale-below-cost laws?," ISER Discussion Paper 0875, Institute of Social and Economic Research, Osaka University.
    9. Azar, Ofer H., 2010. "Can more consumers lead to lower profits? A model of multi-product competition," Journal of Economic Behavior & Organization, Elsevier, vol. 76(2), pages 184-195, November.
    10. Lan, Hao & Lloyd, Tim A. & Morgan, C. Wyn, 2013. "The hazard function of sales: An analysis of UK supermarket food prices," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 151972, Agricultural Economics Society.
    11. Justin P. Johnson, 2017. "Unplanned Purchases and Retail Competition," American Economic Review, American Economic Association, vol. 107(3), pages 931-965, March.
    12. Rhodes, Andrew, 2011. "Multiproduct pricing and the Diamond Paradox," MPRA Paper 32511, University Library of Munich, Germany.
    13. Azar, Ofer H., 2014. "Optimal strategy of multi-product retailers with relative thinking and reference prices," International Journal of Industrial Organization, Elsevier, vol. 37(C), pages 130-140.
    14. Azar, Ofer H., 2013. "Competitive strategy when consumers are affected by reference prices," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 327-340.
    15. In, Younghwan & Wright, Julian, 2014. "Loss-leader pricing and upgrades," Economics Letters, Elsevier, vol. 122(1), pages 19-22.
    16. Vanessa von Schlippenbach, 2008. "Complementarities, Below-Cost Pricing, and Welfare Losses," Discussion Papers of DIW Berlin 788, DIW Berlin, German Institute for Economic Research.
    17. Widmar, Nicole J. Olynk & Byrd, Elizabeth S. & Wolf, Christopher A. & Acharya, Lalatendu, 2016. "Health Consciousness and Consumer Preferences for Holiday Turkey Attributes," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), July.
    18. Piramuthu, Selwyn & Wochner, Sina & Grunow, Martin, 2014. "Should retail stores also RFID-tag ‘cheap’ items?," European Journal of Operational Research, Elsevier, vol. 233(1), pages 281-291.

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