Demand uncertainty and price maintenance: markdowns as destructive competition
Article Abstract:
An analysis of pricing policy in lew of demand uncertainty reveals that markdowns constitute destructive competition as manufacturer profits and equilibrium inventories are higher under minimum resale price maintenance than under market-clearing. The higher the manufacturer inventory and profit is, the higher the consumer surplus and this translates to unrestrained retail competition or destructive competition among retailers.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1997
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An efficient ascending-bid auction for multiple objects
Article Abstract:
The efficacy of standard auction methods in multi-unit auctions is analyzed. It is observed that standard auction methods fail under such a situation. A new ascending-bid auction system for handling multiple unit demands is suggested for efficient outcomes.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 2004
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Optimal pricing mechanisms with unknown demand
Article Abstract:
A new pricing mechanism to examine profitability of bidding mechanisms in relation to posted pricing under unknown demand distribution is proposed.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 2003
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