Loss-leader pricing and upgrades

DOI10.1016/J.ECONLET.2013.10.014MaRDI QIDQ2015997zbMATH OpenOpenAlexFDO

Authors Younghwan In, Julian Wright

Publication date 18 June 2014

Published in Economics Letters (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/j.econlet.2013.10.014

zbMATH Keywords

advertisingsignalingupgradesloss leader

Mathematics Subject Classification ID

Microeconomic theory (price theory and economic markets) (91B24)

Recommendations

• Pricing loss leaders can be hard
• Competitive Pricing by a Price Leader
• Price Leadership
• Cost leadership and pricing
• On the hardness of pricing loss-leaders
• The optimality of upgrade pricing
• Price competition or price leadership
• Optimal pricing with loyalty
• The pricing game of updated and existing products

Cites work

• Advertising and Coordination
• Note. Optimal Promotion Strategies: A Demand-Sided Characterization

Cited in

(4)

• Information Goods Upgrades: Theory and Evidence
• Does add-on presence always lead to lower baseline prices? Theory and evidence
• PROFITABILITY ANALYSIS OF FREE UPGRADE POLICY
• Upgrade auctions in build-to-order manufacturing with loss-averse customers

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