Discriminatory Trade Promotions in Consumer Search Markets

A new version of this paper, co-authored with Edona Reshidi, has become available on March 31, 2022. The paper shows that in consumer search markets discriminatory trade promotions create more profits for manufacturers than uniform pricing. The mechanism relies on consumers having heterogeneous search cost and applies even if they have identical demand.

For the paper, please click here.

For the online Appendix, please click here.