How a discount can have unexpected results

chicagobooth.edu/review | Discounts are among retailers’ most basic options for boosting demand. But can marking an item for sale lead to customers buying less of it? Research by Chicago Booth’s Abigail Sussman, Shirley Zhang (a graduate of Booth’s PhD Program, now at American Express), and Booth’s Christopher K. Hsee finds that when retailers limit the number of units available at the special price, it can.

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