Authors
Citation
S. Sarangi et R. Verbrugge, Late fees and price discrimination, ECON LETT, 69(2), 2000, pp. 153-158
Citations number
2
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765
→ ACNP
Volume
69
Issue
2
Year of publication
2000
Pages
153 - 158
Database
ISI
SICI code
0165-1765(200011)69:2<153:LFAPD>2.0.ZU;2-F
Abstract
Late penalties for items (like videos) sometimes exceed the rental fee, whi
ch itself exceeds the re-renting opportunity cost. This puzzling feature of
rental pricing can be justified as price discrimination when consumers hav
e stochastic costs of returning items on time. (C) 2000 Elsevier Science S.
A. All rights reserved.