EconPapers    
Economics at your fingertips  
 

Price Advertising and Coupons in a Monopoly Model

Ramon Caminal ()

Journal of Industrial Economics, 1996, vol. 44, issue 1, 33-52

Abstract: The paper studies the pricing and advertising policies of a monopolist in a situation where consumers discover prices by costly search. The monopolist is shown to choose between no advertising and large scale advertising. This is shown to be optimal behavior even with decreasing returns to scale to advertising expenditures which would a priori argue for small advertising expenditures. The optimal advertising policy is undertaken in conjunction with a pricing policy that is characterized by downwardly rigid prices. Flexibility with regard to realizations of a cost parameter is achieved via couponing, which, even though it is untargeted, allows for discrimination between ex ante identical consumers. Copyright 1996 by Blackwell Publishing Ltd.

Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-1821%2819960 ... 0.CO%3B2-K&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jindec:v:44:y:1996:i:1:p:33-52

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-1821

Access Statistics for this article

Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

More articles in Journal of Industrial Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2021-10-13
Handle: RePEc:bla:jindec:v:44:y:1996:i:1:p:33-52