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- W1976515464 abstract "Retail prices typically end in 9 cents. This can be due to thresholds between odd and even prices where sales decrease sharply (e.g., $2.89 versus $2.90). However, empirical evidence is inconclusive as to whether such thresholds really exist. We show that observed retailer behavior is rational even when there is uncertainty about the existence of price thresholds. Our analysis is based on the losses in profit contribution that are incurred when a retailer makes the wrong assumptions about the presence of thresholds. By analyzing different response and cost functions, we find that a retailer should typically set 9-ending prices, unless he suspects strong quality-image effects of price endings." @default.
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- W1976515464 title "The impact of price thresholds on profit contribution — Should retailers set 9-ending prices?" @default.
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- W1976515464 doi "https://doi.org/10.1016/s0022-4359(99)80003-7" @default.
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