Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 2003 erstellt
Description:
This paper examines a competitive model of add-on pricing, the practice of advertising low prices for one good in hopes of selling additional products (or a higher quality product) to consumers at a high price at the point of sale. The main conclusion is that add-on pricing softens price competition between firms and results in higher equilibrium profits