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Author: | Kohli, R. Park, H. |
Title: | A cooperative game theory model of quantity discounts. |
Journal: | Management Science
1989 : JUN, VOL. 35:6, p. 693-707 |
Index terms: | PRICING SALES PROMOTION GAME THEORY |
Language: | eng |
Abstract: | Quantity discounts offered by a monopolist are considered in the context of a bargaining problem in which the buyer and the seller negotiate over the order quantity and the average unit price. All-units and incremental quantity discounts that permit transaction at a negotiated outcome are described. The effects of risk sensitivity and bargaining power on quantity discounts are discussed for alternative bargaining models. |
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