search query: @indexterm DISCOUNTED CASH FLOW / total: 128
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| Author: | Wang, Yuxia |
| Title: | Analysis of traders' discount sales according to the principles of economics (original in Chinese) |
| Journal: | Research on Financial and Economic Problems (c)
1999 : 4, p.74-75 |
| Index terms: | DISCOUNT HOUSES DISCOUNTED CASH FLOW RETAILING CHINA |
| Language: | chn |
| Abstract: | Having analyzed the popular phenomenon of discount sales from economics point of view, the article points out that in a short-term this can be beneficial to consumers' surplus, strengthen competition and reduce redundant construction, but in a long-term, it will ultimately lower social overall welfare. The disadvantages caused by discount are as follows. It will make traders take the wrong road of small profits but quick turnover, add the menu cost and corrode rent of honor. Reasonable high prices can stimulate producers to make high-quality products. In addition, discount can easily cause fallacy of composition and consumers' adaptive expectations of lower prices. |
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