Optimal price promotion in the presence
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Gadi Fibich; Arieh Gavious; Oded Lowengart
📂
Article
📅
2007
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John Wiley and Sons
🌐
English
⚖ 159 KB
## Abstract In this study we demonstrate how a reference price may affect the degree of price rigidity/flexibility. For this, we construct a model of reference‐price formation, which we use to analyze the effect of asymmetric reference price (cut ‘effects’) on the profitability of price promotions.