Price
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- 07 May 2018
- Research & Ideas
Why Online Retailers Should Hide Their Best Discounts
Online retailers should take a tip from brick-and-mortar shops: Shove your best deals to the back of the store. Research by Thales Teixeira and Donald Ngwe. Open for comment; Comment(s) posted.
- 15 Mar 2018
- Working Paper Summaries
Targeted Price Controls on Supermarket Products
Governments sometimes consider targeted price controls when popular goods become less affordable. Looking at price controls in Argentina between 2007 and 2015, this study’s findings suggest that new technologies like mobile phones are allowing governments to better enforce targeted price control programs, but the impact of these policies on aggregate inflation is small and short-lived.
- 12 Mar 2018
- Working Paper Summaries
Using Online Prices for Measuring Real Consumption Across Countries
The increasing availability of big data can improve measurement of real consumption in closer to real time. This study shows that online prices may enhance data of the International Comparisons Program, dramatically improving the frequency and transparency of purchasing power parities compared with traditional data collection methods.
- 04 Feb 2018
- Working Paper Summaries
The Long-Run Dynamics of Electricity Demand: Evidence from Municipal Aggregation
This study provides the first quasi-experimental estimate of the long-run elasticity (responsiveness) of residential electricity demand, and finds that it is about double the short-run elasticity. Our findings highlight the importance of accounting for consumption dynamics when evaluating energy policy.
- 11 Jan 2018
- Working Paper Summaries
Brokers and Order Flow Leakage: Evidence from Fire Sales
This study finds that brokers tend to reveal the occurrence of a fire sale to their best clients, allowing them to generate significant profits by predating on the liquidating fund. Such information leakage comes at the expense of higher price impact, and leads to a more costly liquidation for the fire sale originator.
- 05 Apr 2017
- Research & Ideas
For Women Especially, It Pays to Know What Car Repairs Should Cost
Consumers can negotiate cheaper auto repair prices by convincing service reps they know something about market rates—helping women overcome gender discrimination, according to recently published research by Ayelet Israeli and co-authors. Open for comment; Comment(s) posted.
- 09 Dec 2015
- Research Event
How Do You Predict Demand and Set Prices For Products Never Sold Before?
How can a retailer use its own data to determine what to charge for its products on a day-to-day basis? Kris Ferreira explains the value of data-driven-pricing Open for comment; Comment(s) posted.
- 05 Oct 2015
- Working Paper Summaries
Online Network Revenue Management Using Thompson Sampling
Kris Johnson Ferreira and colleagues develop a machine learning algorithm that changes product prices in order to learn consumer demand and maximize total revenue in the presence of limited inventory.
- 15 Dec 2014
- Research & Ideas
Deconstructing the Price Tag
A new study by Bhavya Mohan, Ryan Buell, and Leslie John has an important conclusion for retailers: Explaining what it costs to produce a product can potentially increase its sales. Open for comment; 10 Comment(s) posted.
- 01 Oct 2012
- Research & Ideas
Better by the Bundle?
Video game companies do it, fast-food restaurants, too. Why don't more companies bundle products and services together in one package at a bargain price? Research by Assistant Professor Vineet Kumar. Closed for comment; 3 Comment(s) posted.
- 28 May 2009
- Working Paper Summaries
Monopolistic Competition Between Differentiated Products With Demand For More Than One Variety
How and when is price competition most significant among firms? This paper develops a theoretical framework for studying price competition between multiple firms. Two examples of markets that fit the description for study are software applications and videogames: There are thousands of software applications as well as games, and different users are interested in different applications and/or games. A given software or game user's tastes may overlap with another's, yet they may have nothing in common with a third's. Thus, although there is a sense in which competition is localized (any given firm competes only with firms whose brands are similar to its own), it is not clear how the fact that consumers are generally interested in purchasing multiple products affects the type of competition waged among firms. Key concepts include: This paper proposes a theoretical framework for studying competition between differentiated products when consumers are interested in purchasing more than one brand. Closed for comment; 0 Comment(s) posted.
- 16 Jun 2008
- Research & Ideas
Seven Tips for Managing Price Increases
Consumers get hit with the price-increase hammer every time they drive past a gas station. Harvard Business School professor John Quelch offers tips on how marketers can cope with inflation and consumer sticker shock. Key concepts include: Segment consumers around product usage behavior and price sensitivity. Marketers must reverse engineer products and packaging to hit key retail price points. Cut prices not across the board but only on items selected as your inflation-busters. Unbundle your offerings to make it easy for price-sensitive customers to cherry-pick options and services. Manage your inventory on a last-in, first-out basis. Closed for comment; 0 Comment(s) posted.
- 11 Dec 2006
- Research & Ideas
Fixing Price Tag Confusion
"Partitioned" price tags that include a main price plus additional charges (Lamp: $70, Bulb, $5, Shipping: $15) may be confusing your customers. When is an all-inclusive price the best bet? Open for comment; 0 Comment(s) posted.
- 28 Jun 2004
- Research & Ideas
How to Avoid a Price Increase
Consumers hate price increases, but what is a company to do when material costs skyrocket? One answer: Think small. Professor John Gourville considers the alternative in this Q&A. Closed for comment; 0 Comment(s) posted.
- 10 Feb 2003
- Research & Ideas
Commodity Busters: Be a Price Maker, Not a Price Taker
Too many businesses are price takers, not price makers. That means they are willing to lower prices to capture market share or to sign up a marquee customer. But Harvard Business School professor Benson P. Shapiro says don't let your ego get in the way of good business sense. Here are seven steps toward naming your own price. Closed for comment; 0 Comment(s) posted.
How Would You Price One of the World's Great Watches?
For companies with lots of innovation stuffed in their products, getting the price right is a crucial decision. Stefan Thomke discusses how watchmaker A. Lange & Söhne puts a price on its 173-year-old craftsmanship. Open for comment; Comment(s) posted.