Do firms benefit from high discount rates of customers who purchase complementary products?
- DESPITE AMPLE EVIDENCE THAT CUSTOMERS EXHIBIT HIGHER DISCOUNT RATES THAN FIRMS, IT IS NOT CLEAR HOW DIFFERENCES IN DISCOUNT RATES AFFECT OPTIMAL PRICES, PROFITS, AND WELFARE OF COMPLEMENTARY PRODUCTS (WHICH COULD BE GOODS OR SERVICES). WE SHOW FOR COMPLEMENTARY PROUCTS THAT HIGHER DISCOUNT RATES OF CUSTOMERS DO NOT INCREASE PROFIT OR CONSUMER SURPLUS. FIRMS, INCLUDING BANKS, WOULD BE ADVISED TO SEEK TO REDUCE EXCESSIVE DISCOUNT RATES AMONG CONSUMERS.
| Author: | Iman AhmadiORCiDGND, Bernd SkieraORCiDGND, Anja Lambrecht, Florian Heubrandner |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-579760 |
| ISSN: | 1866-1238 |
| Parent Title (English): | EFL quarterly : an E-Finance Lab publication |
| Publisher: | E-Finance Lab e.V. |
| Place of publication: | Frankfurt am Main |
| Document Type: | Article |
| Language: | English |
| Year of Completion: | 2015 |
| Year of first Publication: | 2015 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2021/01/28 |
| Volume: | 2015 |
| Issue: | 2 |
| Page Number: | 2 |
| First Page: | 4 |
| Last Page: | 5 |
| HeBIS-PPN: | 47725389X |
| Institutes: | Angeschlossene und kooperierende Institutionen / E-Finance Lab e.V. |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Deutsches Urheberrecht |
