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A generalized model of advertised sales

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journal contribution
posted on 12.05.2020, 12:39 authored by Sandro Shelegia, Christopher WilsonChristopher Wilson
To better understand temporary price reductions or ‘sales’, this paper presents a generalized ‘clearinghouse’ framework of advertised sales and explores some applications. By viewing the firms as competing in utility and amending the conventional tie-break rule, we allow for multiple dimensions of firm heterogeneity in complex market environments. Moreover, we i) provide original insights into the number and types of firms that use sales, ii) offer new results on how firm heterogeneity affects market outcomes, iii) extend a common empirical ‘cleaning’ procedure, and iv) analyze a family of activities in sales markets, including persuasive advertising and obfuscation.

Funding

Spanish Ministry of Economy and Competitiveness through the Severo Ochoa Programme for Centres of Excellence in R&D SEV-2015-0563

RYC-2016-20307

ECO2017- 89240-P

History

School

  • Business and Economics

Department

  • Economics

Published in

American Economic Journal: Microeconomics

Volume

13

Issue

1

Pages

195 - 223

Publisher

American Economic Association

Version

VoR (Version of Record)

Rights holder

Copyright © 2020 AEA

Publisher statement

The author has the right to republish, post on servers, redistribute to lists and use any component of this work in other works. For others to do so requires prior specific permission and/or a fee. Permissions may be requested from the American Economic Association Administrative Office.

Acceptance date

04/05/2020

Publication date

2021-02-01

ISSN

1945-7669

eISSN

1945-7685

Language

en

Depositor

Dr Christopher Wilson. Deposit date: 4 May 2020

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