Language:

1,000 Cash Back: The Pass-Through of Auto Manufacturer Promotions

The American economic review, 2006-09, Vol.96 (4), p.1253-1270 [Peer Reviewed Journal]

Full text available

Citations Cited by

Title:
1,000 Cash Back: The Pass-Through of Auto Manufacturer Promotions
Author: Busse, Meghan ; Silva-Risso, Jorge ; Zettelmeyer, Florian
Subjects: Automobile dealers ; Automobile industry ; Bargaining ; Comparative studies ; Customers ; Expenditures ; Hypotheses ; Incentives ; Packaged goods ; Prices ; Rebates ; Sales promotions ; Subsidies
Is Part Of: The American economic review, 2006-09, Vol.96 (4), p.1253-1270
Description: Automobile manufacturers frequently use promotions involving cash incentives. While payments are nominally directed to either customers or dealers, the ultimate beneficiary of the promotion depends on the outcome of price negotiation. We use program evaluation methods to compare the incidence of these two types of promotions. Customers obtain 70 to 90 percent of a customer rebate, but only 30 to 40 percent of a dealer discount promotion, a $500 difference for a typical promotion. Our leading hypothesis is that pass-through rates differ because of information asymmetries: customer rebates are well-publicized to customers, while dealer discount promotions are not.
Publisher: Nashville: American Economic Association
Language: English
Identifier: ISSN: 0002-8282
EISSN: 1944-7981
DOI: 10.1257/aer.96.4.1253
CODEN: AENRAA
Source: ProQuest Central

Back to results list


INSPIRE LIBRARY - TON DUC THANG UNIVERSITY	(84-028) 37 755 057	Feedback
19 Nguyen Huu Tho St. Dist.7, HCM	thuvien@tdtu.edu.vn	Feedback

Searching Remote Databases, Please Wait