Bundling, Discounts Across Product Lines and Volume Discounts In Competitive Markets: A Prisoners` Dilemma?
This paper analyses how competition over rebates for customer loyalty across product lines affects firms` pricing and consumers generally. If buyers incur firm specific costs or have shop specific tastes then competitive loyalty discounts lower consumer surplus overall and raise profits - the same...
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| Format: | Working paper |
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Department of Economics (University of Oxford)
2004
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