Journal ArticleDOI
A Comparison of Bundling and Sequential Pricing in Competitive Markets: Experimental Evidence
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In this article, a series of laboratory experiments comparing bundling and sequential pricing while varying the underlying relationship between the goods in markets where a fraction of buyers comparison shop was conducted, and the results indicated that sequential pricing is generally as profitable to the seller as bundling.Abstract:
Technological advances enable sellers to identify relationships among offered goods. Sellers can leverage this information through pricing strategies such as bundling and sequential pricing. While these strategies have primarily been studied under monopoly assumptions, the strategies are available to competitive firms as well. This paper reports on a series of laboratory experiments comparing bundling and sequential pricing while varying the underlying relationship between the goods in markets where a fraction of buyers comparison shop. The results indicate that sequential pricing is generally as profitable to the seller; however, there is evidence that sequential pricing may be more harmful to consumers than bundling when the goods have complementary values or the buyer’s values are positively correlated.read more
Citations
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Price increasing competition? Experimental evidence
Cary Deck,Cary Deck,Jingping Gu +2 more
TL;DR: In this article, the authors explore the relationship between price increasing competition and overly intense competition and find that sellers are more sensitive to their rivals when buyer values are positively correlated, and they also explore pricing dynamics.
Journal ArticleDOI
Sequential Pricing of Multiple Products: Leveraging Revealed Preferences of Retail Customers Online and with Auto-ID Technologies
TL;DR: A model in which a seller sets prices for goods A and B, allowing for the possibility of sequentially revising the price for good B if the buyer reveals a preference for good A by making an initial purchase decision is proposed.
Journal ArticleDOI
Performance and Strategy: Simultaneous Equations Analysis of Long-lived Firms
Bernadette Power,Gavin C. Reid +1 more
TL;DR: In this article, a simultaneous equations model of performance, strategy and size is tested using fieldwork evidence on long-lived firms in Scotland, and the authors show how this trade-off provides the entrepreneur with two strong incentives: (i) to seek greater efficiency typically by an increase in the human capital of the core workforce; (ii) to achieve higher levels of performance by adopting more diverse competitive strategies.
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Paying for express checkout: competition and price discrimination in multi-server queuing systems.
TL;DR: The market impact of the multi-server seller engaging in waiting cost-based-price discrimination by charging a premium for express checkout is explored and it is found that this form of price discrimination is harmful to sellers and beneficial to consumers.
Journal ArticleDOI
Experimenting with purchase history based price discrimination
TL;DR: In this paper, the authors report behavior in controlled laboratory experiments designed to empirically test the impact of these factors on pricing strategies and find that price precommitment to loyal customers is found to reduce prices overall.
References
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Book
The Organization of Industry
TL;DR: Stigler's "The Organization of Industry" as mentioned in this paper collects essays written over two decades, previously unpublished material, and reprinted articles drawn from numerous sources, many which include additional commentary by the author.
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The Buying Impulse
TL;DR: This paper investigated the subjective experiences that distinguish the onset of the buying impulse, how consumers cope with their impulsive urges to buy, and the types of negative consequences they incur as a result of their impulse buying.
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Commodity Bundling and the Burden of Monopoly
TL;DR: In this paper, the authors analyzed the prevalence of commodity bundling as a marketing strategy and found that it can save cost savings in production, transactions, and information associated with bundling.
Book
Data mining techniques
TL;DR: This chapter discusses the design and analysis of experiments in the context of response surface methodology, and some of the techniques used in this work were new to the literature at the time.