Article ID: | iaor1990463 |
Country: | United States |
Volume: | 8 |
Issue: | 4 |
Start Page Number: | 1 |
End Page Number: | 7 |
Publication Date: | Sep 1989 |
Journal: | Marketing Science |
Authors: | Young Allan Richard . |
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.