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Note. The role of returns policies in pricing and inventory decisions for catalogue goods. (English) Zbl 0989.90043

Summary: Manufacturers often use returns policies to encourage retailers to stock and price items more aggressively. We focus on the effect that such policies have on both a retailer’s and a manufacturer’s profits when the retailer must commit prior to the selling season to both a stocking quantity and a price at which to sell an item. Such a commitment is often necessary for retailers who sell primarily through catalogues.

MSC:

90B30 Production models
90B60 Marketing, advertising
91B24 Microeconomic theory (price theory and economic markets)
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