A Decision Supp Ort System For Group Buying

MANAGEMENT SCIENCE Vol. 35, zero(prenominal) 6. Junc 1989 in IPrinted U.S.A. A cooperative GAME THEORY copy OF QUANTITY DISCOUNTS* RAJEEV KOHLI AND HEUNGSOO PARK Joseph M. Katz catch School of wrinkle, University of Pittsburgh, Pittsburgh, Pennsylvania 15260 College of Business and Economics, Yonsei University, Seoul, Korea sum of money discounts offeredby a monopoliser ar consideredin the context of a bargainingproblem in which the vendee and the marketer negotiate over the send step and the average whole of measurement value. All-units and incremental amount of money discounts that permit transaction at a negotiated outcome argon described. The effects of risk aesthesia and bargainingpower on quantity discounts are discussed for alternative bargaining models. (MARKETING-DISTRIBUTION; MARKETING-PRICING; negociate; line/PRODUCTION-EOQ) 1. Introduction Quantity discounts are often employ in pricing policies. Rachman (1975) and Howell, Kuzdrall, Britney and Wilcox (1986) greenback their widespread use and their vastness to market strategy. Rao (1980) adumbrates that quantity discounts should sop up into account inflation, mergersamong buyers, and increased mundanity in buyers orderingpolicies.

Heirritz and Farrel (1971) examine quantity discounts from the purchasers viewpoint, urging buyers to take benefit of discounts because the price differentials can be significant. Researchers in marketing and economic science suggest three briny reasons for quantity discounts: (i) perfect divergence against a single buyer or a equal multitude of buyers (Buchanan 1953, Gabor 1965, Moorthy 1984), (ii) partial inconsistency against a heterogeneous pigeonholing of buyers (Oi 1971, Leland and Meyer 1973, Faulhaber and Panzar 1977, spud 1977, Spence 1977, Oren, Smith and Wilson 1982, 1983), and (iii) amend efficiency of transactions amongst a seller and a buyer (Crowther 1964, Foraker 1961, Dolan 1978, Lal and Staelin 1984, Monahan 1984, Lee and Rosenblatt 1986, pa and Srikanth 1987). Dolan (1987)...If you fatality to get a full essay, order it on our website: Ordercustompaper.com

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