Coupon Advertising Under Imperfect Price Information

B-Tier
Journal: Journal of Economics & Management Strategy
Year: 1999
Volume: 8
Issue: 4
Pages: 523-544

Authors (2)

José Luis Moraga‐González (not in RePEc) Emmanuel Petrakis (University of Crete)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper studies sales promotions through coupons in an oligopoly under imperfect price information. Sellers can distribute either ordinary coupons, or coupon (price) advertising, or both types of coupons, at distant locations to attract consumers from their rivals' markets. A unique symmetric pure‐strategy equilibrium exists where rebates and couponing intensity are always positive. In the ordinary‐coupon equilibrium, prices, promotional efforts, and sellers' profits are higher than in the coupon‐advertising equilibrium. However, if sellers are allowed to distribute both types of coupons, only coupon advertising is sent out in equilibrium.

Technical Details

RePEc Handle
repec:bla:jemstr:v:8:y:1999:i:4:p:523-544
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-26