| R. J. Deneckere and R. P. McAfee. Damaged goods. J. Economics and Management Strategy, 5(2):149--174, 1966. |
....and so on. Odlyzko2] The incentive to use quality differentiation to price discriminate is even leading to increasing application of the damaged goods approach, in which the seller incurs increased costs to provide goods that sell for lower prices. This phenomenon is explored in detail in [DeneckereM]. One example cited there is of two IBM laser printers of around 1990, in which the slower and less expensive one differed from its higher priced almost twin just in having some extra circuitry that slowed it down. Another example is of Federal Express service, which has next day morning delivery, ....
R. J. Deneckere and R. P. McAfee, Damaged goods, J. Economics and Management Strategy, vol. 5, no. 2 (1966), pp. 149-174.
....has next day delivery and next day by 10am delivery. Regular next day delivery packages that are available for delivery at 10 am are not delivered then, but in a separate trip in the afternoon. This type of approach, referred to as damaged goods, has been studied by Deneckere and McAfee [10], who show that it is common in high tech industries, and that it often serves to promote social welfare. This approach appears to be especially suited for trade in information goods. See [24, 33] Methods of this type could be used to induce a more even load on the separate channels, and thus ....
Deneckere, R. J. and McAfee, R. P. Damaged goods, J. Economics and Management Strategy, 5, no. 2 (1966), 149-174.
....has next day delivery and next day by 10am delivery. Regular next day delivery packages that are available for delivery at 10 am are not delivered then, but in a separate trip in the afternoon. This type of approach, referred to as damaged goods, has been studied by Deneckere and McAfee [DeneckereM], who show that it is common in high tech industries, and that it often serves to promote social welfare. This approach appears to be especially suited for trade in information goods. See [Odlyzko1, Varian2] Methods of this type could be used to induce a more even load on the separate channels, ....
R. J. Deneckere and R. P. McAfee, Damaged goods, J. Economics and Management Strategy, 5, no. 2 (1966), 149-174.
....was found by independent testers, and was not advertised by IBM) through the addition of additional chips to the E version that did nothing but slow down processing. Thus the E model cost more to produce, sold for less, and was less useful. However, as Deneckere and McAfee show in their paper [Deneckere McAfee 1996], which contains many more examples of this type (referred to as damaged goods ) it can be better for all classes of consumers to allow such behavior, however offensive it might be to the general notions of fairness. Consumers who do not need to print much, and are not willing to pay for the ....
....competition, in which the market price equals the marginal cost, will have to be avoided, since marginal prices will be essentially zero. The incentive that low marginal costs provide to create barriers in commerce can already be seen in many high technology fields. The damaged goods studied in [Deneckere McAfee 1996] come primarily from such areas. The pharmaceutical industry is notorious for selling products for hundreds of times more than the cost of producing them, and for selling the same chemicals for human use for ten times the price charged for veterinary purposes. While the incentives to erect ....
Deneckere, R. J., & McAfee, R. P. Damaged goods, J. Economics and Management Strategy, to appear.
....has next day delivery and next day by 10am delivery. Regular next day delivery packages that are available for delivery at 10 am are not delivered then, but in a separate trip in the afternoon. This type of approach, referred to as damaged goods, has been studied by Deneckere and McAfee [DeneckereM], who show that it is common in high tech industries, and that it often serves to promote social welfare. This approach appears to be especially suited for trade in information goods. See [Odlyzko, Varian2] Methods of this type could be used to induce a more even load on the separate networks, ....
R. J. Deneckere and R. P. McAfee, Damaged goods, J. Economics and Management Strategy, 5, no. 2 (1966), 149-174.
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R. J. Deneckere and R. P. McAfee. Damaged goods. J. Economics and Management Strategy, 5(2):149--174, 1966.
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