@techreport{Bruttel2013there-29739,
  year={2013},
  series={Working Paper Series / Department of Economics},
  title={Is there an Exclusionary Effect of Retroactive Price Reduction Schemes?},
  number={2013-21},
  author={Bruttel, Lisa}
}

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    <dcterms:title>Is there an Exclusionary Effect of Retroactive Price Reduction Schemes?</dcterms:title>
    <dcterms:abstract xml:lang="eng">This paper presents an experiment on the loyalty enhancing effect potentially created by retroactive price reduction schemes. Such price reductions are applied to all units bought in a certain time frame if the total quantity passes a given threshold. Close to the threshold, the marginal price the buyer pays for the missing units up to the threshold is very low. A dominant firm can use this effect to exclude potential rivals from competition, which is why some jurisdictions consider retroactive discounts as unlawful. This study shows that there in fact is a loyalty enhancing effect of retroactive discounts and how it relates to risk preferences and loss aversion.</dcterms:abstract>
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