Botir B. Okhunjanov , Jill J. McCluskey , Ron C. Mittelhammer
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引用次数: 0
Abstract
We analyze why firms might set their prices below the market equilibrium levels and thereby create persistent excess demand. In a dynamic setting, if the excess demand results in a perception of scarcity, which is a demand shifter, cumulative discounted profits can be higher over time. Our empirical application is based on data from the market for “cult wines.” We find that the larger the difference between the secondary market price and the winemaker's release price, the higher the secondary market price will be for the same wine in the following year, which consistent with a scarcity-pricing strategy.
期刊介绍：
The Journal of Economic Behavior and Organization is devoted to theoretical and empirical research concerning economic decision, organization and behavior and to economic change in all its aspects. Its specific purposes are to foster an improved understanding of how human cognitive, computational and informational characteristics influence the working of economic organizations and market economies and how an economy structural features lead to various types of micro and macro behavior, to changing patterns of development and to institutional evolution. Research with these purposes that explore the interrelations of economics with other disciplines such as biology, psychology, law, anthropology, sociology and mathematics is particularly welcome.
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