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Price Adjustment Policy with Partial Refunds

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  • Cohen-Vernik, Dinah
  • Pazgal, Amit

Abstract

Have you ever purchased an item only to notice a short while later that its price was reduced? Many retailers offer to refund customers the full price difference as long as the discount occurred within a short period of time after the original purchase. Such policy looks attractive to consumers as it shields them from future price fluctuations. But can this policy be advantageous for the retailer?

Suggested Citation

  • Cohen-Vernik, Dinah & Pazgal, Amit, 2017. "Price Adjustment Policy with Partial Refunds," Journal of Retailing, Elsevier, vol. 93(4), pages 507-526.
    • Handle: RePEc:eee:jouret:v:93:y:2017:i:4:p:507-526
    DOI: 10.1016/j.jretai.2017.08.002
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    References listed on IDEAS

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    Cited by:

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    5. Ling Zhao & Anquan Zou & Pin Zhou, 2023. "E‐retailer's dynamic inventory and pricing policy with price‐protection services," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 490-501, January.
    6. Gung, Roger R. & Huang, Chun-Che & Hung, Wen-I & Fang, Yu-Jie, 2020. "The use of hybrid analytics to establish effective strategies for household energy conservation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).

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