Monopolist's Pricing Strategy Shifts Consumer Behavior, Boosts Profits and Delays Purchases
The article explores how a company can make the most profit when selling products that people can choose to buy at different times. By studying how demand changes over time, the researchers found that the best pricing strategy involves increasing prices quickly and lowering them slowly. This strategy outperforms renting and can be applied to various situations like seasonal demand shifts. For example, when Canadian Tire holds a back-to-school sale, it attracts new customers but also makes some existing customers delay their purchases.