Department   Undergraduate School  , School of Commerce
   Position   Professor
Language English
Publication Date 2012/03
Type Academic Journal
Peer Review Peer reviewed
Title "An Economic Analysis of Add-on Discounts", Managerial and Decision Economics
Contribution Type Co-authored (other than first author)
Journal Managerial and Decision Economics
Journal TypeAnother Country
Publisher Wiley
Volume, Issue, Page 33(2),pp.99-107
Author and coauthor Takanori Adachi and Takeshi Ebina
Details This paper provides an economic explanation for what determines whether a seller should offer add-on discounts (e.g., cable TV subscription packages). We construct a monopolistic model with two types of consumer heterogeneity: (i) those who always buy an add-on when they purchase a base good (`premium' consumers); and (ii) those who do not necessarily buy the add-on (`economy' consumers). It is shown that the greater the number of `premium' consumers, the less desirable add-on discounts are for a seller.
URL for researchmap https://researchmap.jp/ebinatakeshi2010/