2014
DOI: 10.1007/s40547-014-0009-9
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Effect of Time Preferences on Optimal Prices and Profitability of Advance Selling

Abstract: In advance selling, firms announce that they will charge different prices for those who buy early vs. those who buy late. Previous literature showed that advance selling allows for increased profits in a rather wide range of settings, which typically hold in many service industries. Despite ample evidence that consumers exhibit higher discount rates than firms, it is not clear how differences in time preferences affect optimal prices of advance selling. This article develops an analytical model for optimal pri… Show more

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Cited by 4 publications
(1 citation statement)
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“…Chew et al [12] discussed the problem of the multistage perishable product-ordering strategy. Schaaf and Skiera [13] studied the effect of time preferences on optimal prices and profitability of advance selling. Reviewing the papers on presale strategy, we can see that the research content of presale strategy has been relatively rich, the presale mode has been successfully applied to the online sales of many commodities, and the application of fresh agricultural products is in the exploratory stage.…”
Section: Introductionmentioning
confidence: 99%
“…Chew et al [12] discussed the problem of the multistage perishable product-ordering strategy. Schaaf and Skiera [13] studied the effect of time preferences on optimal prices and profitability of advance selling. Reviewing the papers on presale strategy, we can see that the research content of presale strategy has been relatively rich, the presale mode has been successfully applied to the online sales of many commodities, and the application of fresh agricultural products is in the exploratory stage.…”
Section: Introductionmentioning
confidence: 99%