NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Duncan Simester

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Working Papers and Chapters

August 2013Informational Rigidities and the Stickiness of Temporary Sales
with Eric Anderson, Emi Nakamura, Jón Steinsson: w19350
Frequent price changes do not imply a rapid response of prices to economic shocks if the price changes are based on old information. We study the extent of such information "stickiness" for temporary sales. Institutionally, we describe how and why temporary sales are "sticky plans" that are updated infrequently, despite the occurrence of frequent price changes. We then study the empirical characteristics of sales and regular price changes using a unique dataset from a large retailer, containing direct measures of both regular prices and sales, in addition to wholesale prices. The timing and magnitude of regular price changes respond strongly to wholesale price changes and to aggregate economic shocks, while temporary sales are unresponsive. Finally, we show that sales account for the major...
June 2013Multichannel Spillovers from a Factory Store
with Yi Qian, Eric Anderson: w19176
We study how the opening of a factory store impacts a retailer's demand in its other channels. It is possible that a factory store may damage a retailer's brand image and lead to substitution away from its higher quality core channels. Alternatively, the opening of a factory store may have positive effects as it may attract new buyers and serve as a form of brand advertising. In this paper, we use a natural experiment that arises from a retailer introducing a factory store in 2002. We analyze data that spans all customers and all channels from 1995 to 2007. This allows for careful pre and post analysis of the factory store opening. We find that the introduction of the factory store led to substantial positive spillovers to the core channels that lasted for multiple years. Customers purch...
May 2007"The Best Price You'll Ever Get" The 2005 Employee Discount Pricing Promotions in the U.S. Automobile Industry
with Meghan R. Busse, Florian Zettelmeyer: w13140
During the summer of 2005, the Big Three U.S. automobile manufacturers offered a customer promotion that allowed customers to buy new cars at the discounted price formerly offered only to employees. The initial months of the promotion were record sales months for each of the Big Three firms, suggesting that customers thought that the prices offered during the promotions were particularly attractive. In fact, such large rebates had been available before the employee discount promotion that many customers paid higher prices following the introduction of the promotions than they would have in the weeks just before. We hypothesize that the complex nature of auto prices, the fact that prices are negotiated rather than posted, and the fact that buyers do not participate frequently in the market ...

Published: Published online before print August 26, 2009, doi: 10.1287/mksc.1090.0516 Marketing Science August 2009 mksc.1090.0516

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

 
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