A Decision Supp Ort System For Group Buying

MANAGEMENT SCIENCE Vol. 35, no 6. Junc 1989 in IPrinted U.S.A. A harmonize GAME THEORY fashion model OF QUANTITY DISCOUNTS* RAJEEV KOHLI AND HEUNGSOO PARK Joseph M. Katz taking into custody School of fear, University of Pittsburgh, Pittsburgh, Pennsylvania 15260 College of Business and Economics, Yonsei University, Seoul, Korea sum discounts offeredby a monopolist atomic number 18 consideredin the context of a bargainingproblem in which the vendee and the seller negotiate over the format step and the average unit of measurement of measurement value. All-units and incremental amount discounts that permit transaction at a negotiated outcome are described. The effects of risk esthesia and bargainingpower on quantity discounts are discussed for alternative bargaining models. (MARKETING-DISTRIBUTION; MARKETING-PRICING; talk terms; line/PRODUCTION-EOQ) 1. Introduction Quantity discounts are often utilise in pricing policies. Rachman (1975) and Howell, Kuzdrall, Britney and Wilcox (1986) strike out their widespread use and their richness to market strategy. Rao (1980) adumbrates that quantity discounts should reduce into account inflation, mergersamong buyers, and increased sophistication in buyers orderingpolicies.

Heirritz and Farrel (1971) examine quantity discounts from the purchasers viewpoint, urging buyers to take expediency of discounts because the price differentials can be significant. Researchers in marketing and political economy suggest three main reasons for quantity discounts: (i) perfect diversity against a single buyer or a uniform multitude of buyers (Buchanan 1953, Gabor 1965, Moorthy 1984), (ii) partial difference against a heterogeneous free radical of buyers (Oi 1971, Leland and Meyer 1973, Faulhaber and Panzar 1977, spud 1977, Spence 1977, Oren, Smith and Wilson 1982, 1983), and (iii) modify efficiency of transactions in the midst of a seller and a buyer (Crowther 1964, Foraker 1961, Dolan 1978, Lal and Staelin 1984, Monahan 1984, Lee and Rosenblatt 1986, atomic number 91 and Srikanth 1987). Dolan (1987)...If you fatality to get a full essay, order it on our website: Orderessay

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