To Groupon or Not to Groupon: The Profitability of Deep Discounts

Preprint OPEN
Benjamin Edelman; Sonia Jaffe; Scott Duke Kominers;
  • Subject: voucher discounts, Groupon, experience goods, repeat purchase.

We examine the profitability and implications of online discount vouchers, a relatively new marketing tool that offers consumers large discounts when they prepay for participating firms' goods and services. Within a model of repeat experience good purchase, we examine t... View more
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