This paper examines a competitive model of add-on pricing, the practice of advertising low prices for one good in hopes of selling additional products (or a higher quality product) to consumers at a higher price at the point of sale. The main conclusion is that add-on pricing softens price competition between firms and results in higher equilibrium profits. JEL Classification No.: L13, M30
We analyze markets where firms competing on price advertise to increase the probability of entering ...
We use a laboratory experiment to study advertising and pricing behavior in a market where consumers...
This paper addresses the issue of retail price image by offering an explanation for how and when sto...
This paper examines a competitive model of add-on pricing, the practice of advertising low prices fo...
This paper examines competitive price discrimination with horizontal and vertical taste differences....
In many industries, firms give consumers the opportunity to add (at a price) optional goods and serv...
In many industries, firms give consumers the opportunity to add (at a price) optional goods and serv...
Sellers often provide complimentary “no extra charge” add-ons (e.g., free Internet connection) to co...
Firms often offer a variety of add-on products in addition to their core information goods. How shou...
Firms in a variety of industries offer addon products to consumers who have previously purchased a b...
We study the pricing behaviour of a multiproduct firm, when consumers must pay a search cost to lear...
Add-on pricing, also known as drip pricing, is a common practice whereby firms prominently post base...
Firms in a variety of industries offer add-on products to consumers who have previously purchased a ...
Despite the empirical relevance of advertising strategies in concentrated markets, the economics lit...
I construct a model in which an oligopoly first invests in persuasive advertising in order to induce...
We analyze markets where firms competing on price advertise to increase the probability of entering ...
We use a laboratory experiment to study advertising and pricing behavior in a market where consumers...
This paper addresses the issue of retail price image by offering an explanation for how and when sto...
This paper examines a competitive model of add-on pricing, the practice of advertising low prices fo...
This paper examines competitive price discrimination with horizontal and vertical taste differences....
In many industries, firms give consumers the opportunity to add (at a price) optional goods and serv...
In many industries, firms give consumers the opportunity to add (at a price) optional goods and serv...
Sellers often provide complimentary “no extra charge” add-ons (e.g., free Internet connection) to co...
Firms often offer a variety of add-on products in addition to their core information goods. How shou...
Firms in a variety of industries offer addon products to consumers who have previously purchased a b...
We study the pricing behaviour of a multiproduct firm, when consumers must pay a search cost to lear...
Add-on pricing, also known as drip pricing, is a common practice whereby firms prominently post base...
Firms in a variety of industries offer add-on products to consumers who have previously purchased a ...
Despite the empirical relevance of advertising strategies in concentrated markets, the economics lit...
I construct a model in which an oligopoly first invests in persuasive advertising in order to induce...
We analyze markets where firms competing on price advertise to increase the probability of entering ...
We use a laboratory experiment to study advertising and pricing behavior in a market where consumers...
This paper addresses the issue of retail price image by offering an explanation for how and when sto...