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A Model of Add-on Pricing

Glenn Ellison

出版	National Bureau of Economic Research, 2003
URL	http://books.google.com.hk/books?id=8Kt-nQEACAAJ&hl=&source=gbs_api

註釋

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.