search query: @indexterm DISCOUNT RATE / total: 136
reference: 4 / 136
| Author: | Möller, M. Watanabe, M. |
| Title: | Advance purchase discounts versus clearance sales |
| Journal: | Economic Journal
2010 : SEP, VOL. 120:547, p. 1125-1148 |
| Index terms: | sales prices price discrimination discount rate profit capacity models |
| Freeterms: | special sales |
| Language: | eng |
| Abstract: | This article deals with advance selling problems. It is explained why some goods, e.g. airline tickets, are sold cheap to early buyers, whereas others, e.g. theatre tickets, offer discounts to late buyers. Derived is the profit maximising selling strategy for a monopolist with certain aggregate demand (here as: a-d.) but buyers facing uncertainty about their individual demands. When a-d. exceeds capacity, both Advance Purchase Discounts and Clearance Sales might be optimal, as well. It is determined how the comparison of these price discrimination strategies depends on the rationing rule, capacity costs and the availability of temporal capacity limits, price commitment and resale. |
SCIMA