Publications

February 1976
Background Note

Robert J. Dolan's continuing research on marketing issues focuses on pricing policy and new products. His research program encompasses the development of both cases and conceptual models. Dolan's focus is the proper utilization of customer input in the new-product... View Details

September 1993 (Revised December 1993)
Background Note

Note on Pricing and Public Policy

By: Willis M. Emmons III

Surveys a number of essential issues related to pricing and public policy in market economies. Begins with a brief review of the price-determination process in competitive markets, then examines a range of topics involving pricing and public policy in monopoly and... View Details

Keywords: Price; Business Strategy; Policy; Valuation; Management Analysis, Tools, and Techniques; Competition; Economic Systems; Monopoly; Duopoly and Oligopoly; Cost

June 1995 (Revised October 1999)
Case

Microsoft Corp.'s Pricing Policies

Describes the antitrust issues that arose in 1994 and 1995 with respect to Microsoft's marketing practices. View Details

Keywords: Law; Monopoly; Information Technology Industry

March–April 2020
Article

Pricing Policies that Protect your Brand

By: Ayelet Israeli and Eugene F. Zelek Jr.

When customers seek out online deals, it seems like a win for everybody: Brands, retailers, dealers, and distributors sell more goods, and buyers get a bargain. What's not to like? Here's the problem: Lured by rock-bottom online prices, customers often end up dealing... View Details

Keywords: Price; Policy; Brands and Branding; E-commerce

July 1981 (Revised June 1987)
Case

Hartmann Luggage Co.: Price Promotion Policy

By: John A. Quelch

The president and the marketing vice president are reviewing past Hartmann price promotions in order to decide whether to run one or more promotions in 1981-82. View Details

Keywords: Price; Product Marketing; Consumer Products Industry

March 1986 (Revised September 1987)
Case

United Airlines: Price Promotion Policy

By: John A. Quelch

July 7, 2022
Other Article

Are Online Prices Higher Because of Pricing Algorithms?

By: Zach Y. Brown and Alexander J. MacKay

This article reviews recent work examining pricing strategies of major online retailers and the potential effects of pricing algorithms. We describe how pricing algorithms can lead to higher prices in a number of ways, even if some characteristics of these algorithms... View Details

Keywords: Pricing Algorithms; Online Marketplace; Digital Strategy; Internet and the Web; Retail Industry

June 2012
Article

Pricing to Create Shared Value

By: Marco Bertini and John T. Gourville

Many companies are in competition with their customers to extract as much value as possible from every transaction. Pricing is their weapon of choice, and consumers fight back by rooting out and disseminating pricing policies that seem unfair. The problem is that... View Details

Keywords: Pricing; Marketing Strategy; Price; Customer Focus and Relationships; Customer Relationship Management; Value Creation; Fairness

2008
Working Paper

Behavioral Aspects of Price Setting, and Their Policy Implications

By: Julio J. Rotemberg

This paper starts by discussing consumers' cognitive and emotional reaction to posted prices. Cognitively, some consumers do not appear to make effective use of price information to maximize their consumption-based utility. Emotionally, prices can induce regret and... View Details

Keywords: Inflation and Deflation; Price; Policy; Laws and Statutes; Consumer Behavior; Emotions

2009
Chapter

Behavioral Aspects of Price Setting, and Their Policy Implications

By: Julio J. Rotemberg

This paper starts by discussing consumers' cognitive and emotional reaction to posted prices. Cognitively, some consumers do not appear to make effective use of price information to maximize their consumption-based utility. Emotionally, prices can induce regret and... View Details

Keywords: Inflation and Deflation; Price; Policy; Laws and Statutes; Demand and Consumers; Business and Government Relations

January–February 2020
Article

Consumer Reactions to Drip Pricing

By: Shelle Santana, Steven Dallas and Vicki Morwitz

This research examines how drip pricing—a strategy whereby a firm advertises only part of a product’s price upfront and then reveals additional mandatory or optional fees/surcharges as the consumer proceeds through the buying process—affects consumer choice and... View Details

Keywords: Drip Pricing; Pricing; Consumer Protection; Hidden Fees; Price; Consumer Behavior; Perception

25 Feb 2020
News

Pricing Policies That Protect Your Brand

November 1983
Article

Supply Shocks, Sticky Prices and Monetary Policy

By: J. J. Rotemberg

Keywords: Price; Money; Policy

Article

Monetary Policy and Costs of Price Adjustment

By: J. J. Rotemberg

Keywords: Policy; Price; Cost

June 2018
Case

American Airlines' Value Pricing (Abridged)

By: Alvin J. Silk and Sunil Gupta

This is an abridged version of the 1992 case where American Airlines (AA) launched "Value Pricing" in an attempt to simplify the pricing structure of the airline industry. AA expected that this plan would benefit not only consumers, but also AA and the entire airline... View Details

Keywords: Consumer Marketing; Market Segmentation; Pricing; Pricing Strategy; Demand Analysis; Competition; Marketing; Segmentation; Price; Strategy; Demand and Consumers; Analysis; Air Transportation Industry

Article

Variance-Minimizing Monetary Policies with Lagged Price Adjustment and Rational Expectations

By: Jerry R. Green and Seppo Honkapohja

This paper considers a macroeconomic model with rational expectations in which prices are incompletely flexible. Markets therefore fail to clear. In such a model monetary policy is not neutral. The variance of real and nominal quantities and interest rates is sensitive... View Details

2022
Article

Dynamic Pricing Algorithms, Consumer Harm, and Regulatory Response

By: Alexander MacKay and Samuel N. Weinstein

Pricing algorithms are rapidly transforming markets, from ride-sharing apps, to air travel, to online retail. Regulators and scholars have watched this development with a wary eye. Their focus so far has been on the potential for pricing algorithms to facilitate... View Details

Keywords: Competition Policy; Regulation; Algorithmic Pricing; Dynamic Pricing; Economics; Law And Economics; Law And Regulation; Consumer Protection; Antitrust Law; Industrial Organization; Antitrust Issues And Policies; Technological Change: Choices And Consequences; Competition; Policy; Price; Governing Rules, Regulations, and Reforms; Microeconomics; Duopoly and Oligopoly; Law

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