@techreport{NBERw9721,
 title = "A Model of Add-on Pricing",
 author = "Glenn Ellison",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "9721",
 year = "2003",
 month = "May",
 URL = "http://www.nber.org/papers/w9721",
 abstract = {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.},
}