Coupon-advertising under imperfect price information
discriminates to a large degree. Hearing that Pepsi is the right one, baby or Tide gets your clothes whiter than white may not be among the most edifying lessons consumers could learn. The airline has a degree of monopoly power, so it faces a downward-sloping demand curve. It seems likely that the price elasticities of demand of these two groups for a particular flight will differ. It seems highly unlikely that any new product could be launched without advertising. Even critics of advertising generally agree that when advertising advises consumers about the availability of new products, or when it provides price information, it serves a useful function. An analysis by Francisco Alpizar, an economist with Gothenburg University in Sweden and nike coupons online shopping catie, a tropical research institute in Costa Rica, suggests that Costa Rica should increase the degree to which it engages in price discrimination in pricing its national parks. Charging a 2 fee to locals would satisfy the efficiency requirement that price equal marginal cost for local visitors; the 10 fee to foreigners would permit the country to exploit its monopoly power in permitting people to visit the parks. The absence of advertising would thus be a barrier to entry that would increase the degree of monopoly power in the economy.
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This paper studies sales promotions through coupons in an oligopoly under imperfec t price information.
Sellers can distribute either ordinary coupons.
Sales Promotion techniques for short-term rise in sales is increasingly being used.
Coupon Advertising Under Imperfect Price Information - Moraga
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(PDF) Classification of Empirical Work on Sales Promotion
11.3 Extensions of Imperfect Competition: Advertising and Price
Emmanuel Petrakis University of Crete - Academia
Fruit of the loom underwear coupons, Zero-coupon bond price simulation,
Advertising, like all other economic phenomena, has benefits as well as costs. Professor Alpizar proposes increasing voucher signification the fee for foreigners. Examples of price discrimination abound. In the early 1970s, about half the states in the United States banned advertising by firms making prescription eyeglasses; the other half allowed. A comparison of prices in the two groups of states by economist Lee Benham showed that the cost of prescription eyeglasses was far lower in states that allowed advertising than in states that banned it (Benham,., 1972). Advertising is thus a two-edged sword. Low-cost compact car market in 1994, it flooded the airwaves with advertising. One buyer might require special billing practices, another might require delivery on a particular day of the week, and yet another might require special packaging.
Title: Coupon Advertising under Imperfect Price Information.
Firms in monopoly, monopolistic competition, and oligopoly use advertising when.
By providing information to consumers about prices, for example, it may.
Children receive discount prices for movie theater tickets and entrance fees.
Studies Cost Reduction and Economics.