Note—An Economic Rationale for Door Prizes

Allan Richard Young
Additional contact information
Allan Richard Young: University of Hawaii at Hilo

Marketing Science, 1989, vol. 8, issue 4, 375-380

Abstract: If buyers face transaction costs, a workable pricing scheme might require door prizes in addition to a per-unit price. The door prize compensates customers for the transaction expense, and the seller earns positive profit because the price exceeds the cost of inframarginal units.

Keywords: economics; pricing; door prizes; transaction cost (search for similar items in EconPapers)
Date: 1989
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1287/mksc.8.4.375 (application/pdf)

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:inm:ormksc:v:8:y:1989:i:4:p:375-380

Access Statistics for this article

More articles in Marketing Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().