 A Generalized Model of Advertised SalesSandro Shelegia and Christopher Wilson No 14113, CEPR Discussion Papers from C.E.P.R. Discussion Papers Abstract: To better understand temporary price reductions or ‘sales’, this paper presents a generalized ‘clearinghouse’ framework of advertised sales and explores some example applications. By viewing the ï¬ rms as competing in utility and amending the conventional tie-break rule, we allow for multiple dimensions of ï¬ rm heterogeneity in complex market environments. Moreover, we i) provide original insights into the number and types of ï¬ rms that use sales, ii) offer new results on how ï¬ rm 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. Keywords: Sales; Price dispersion; Advertising; Clearinghouse; Heterogeneity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:14113 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX. |
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