Garrett, Daniel F.
(2019)
Fake Sales: A Dynamic Pricing Perspective.
TSE Working Paper, n. 19-1037, Toulouse
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Abstract
Some sellers display high "regular" prices, but mark down these prices the vast majority of
the time, advertising the good as "on sale" or "discounted". This note suggests a framework for understanding the practice, emphasizing the role of buyer uncertainty about their future valuations for the good. We argue that so-called "regular" prices set buyers' expectations regarding future prices, expectations that need not be tethered to the prices actually set. By manipulating upwards buyers' expectations of future prices, the seller can increase demand for the good at the current "sale" price, increasing profits
Item Type: | Monograph (Working Paper) |
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Language: | English |
Date: | September 2019 |
Place of Publication: | Toulouse |
Uncontrolled Keywords: | fake sales, dynamic pricing, value uncertainty |
JEL Classification: | D82 - Asymmetric and Private Information L12 - Monopoly; Monopolization Strategies |
Subjects: | B- ECONOMIE ET FINANCE |
Divisions: | TSE-R (Toulouse) |
Institution: | Université Toulouse 1 Capitole |
Site: | UT1 |
Date Deposited: | 16 Sep 2019 08:41 |
Last Modified: | 27 Oct 2021 13:37 |
OAI Identifier: | oai:tse-fr.eu:123494 |
URI: | https://publications.ut-capitole.fr/id/eprint/32754 |