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A Model of Add-on Pricing / Glenn Ellison.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Ellison, Glenn.
Contributor:
National Bureau of Economic Research.
Series:
Working Paper Series (National Bureau of Economic Research) no. w9721.
NBER working paper series no. w9721
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2003.
Summary:
This paper examines a competitive model of add-on pricing, the practice of advertising low prices for one good in hopes of selling additional products (or a higher quality product) to consumers at a high price at the point of sale. The main conclusion is that add-on pricing softens price competition between firms and results in higher equilibrium profits.
Notes:
Print version record
May 2003.

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