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Record W2890969249 · doi:10.1561/107.00000048

Do Small Firms Pay to Stay? An Experimental Investigation

2018· article· en· W2890969249 on OpenAlexaff
Ammara Mahmood, Nir Vulkan

Bibliographic record

VenueJournal of Marketing Behavior · 2018
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicConsumer Market Behavior and Pricing
Canadian institutionsWilfrid Laurier University
Fundersnot available
KeywordsCompetitor analysisMarket sharePrice discriminationCompetition (biology)Dominance (genetics)Customer baseMicroeconomicsBusinessLoyalty business modelPricing strategiesLoyaltyEconomicsMarketingIndustrial organizationService quality

Abstract

fetched live from OpenAlex

Through this study, we aim to reconcile differences in observed pricing behavior across industries by theoretically and empirically analysing the effect of market share on pricing strategies. Based on our proposed model of static competition, in equilibrium, symmetric competitors will offer discounts to new customers, while asymmetric competition provides sufficient conditions for small firms to offer loyalty rewards. We find that aggressiveness in pricing (difference in price to new and existing customers) decreases when markets become more competitive and market dominance (large inherited market share) is positively correlated with aggressive customer poaching. We further test our predictions by conducting a controlled experiment. In line with our predictions, we find that the price setting behavior of experimental participants varies with market share and that having a smaller inherited customer base results in loyalty rewards. Our work contributes to the behvaior based price discrimination literature by showing that a low inherited market share provides a sufficient condition for discounts to existing customers. The managerial implications of these findings are also discussed.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.004
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesInsufficient payload (model declined to judge)
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Observational · Consensus signal: Observational
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.119
Threshold uncertainty score1.000

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0040.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0010.001
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0010.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.046
GPT teacher head0.289
Teacher spread0.243 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

Study designObservational
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations2
Published2018
Admission routes1
Has abstractyes

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