Effect of Price‐discount Distribution in Multi‐unit Price Promotions on Consumers’ Willingness to Pay, Sales Value, and Retailers’ Revenue

Using multi‐unit auctions, we examined the effect of different distributions of price discount across multiple units of a relatively new product on consumers' Willingness to Pay (WTP), sales value and retailers' revenue. We found that allowing the price discount to be increasing in the number of units increases willingness to pay, sales value and retailers' revenue and that a price discount that is uniformly distributed across units also has the...