Note. the Role of Returns Policies in Pricing and Inventory Decisions for Catalogue Goods

  • Authors:
  • Hamilton Emmons;Stephen M. Gilbert

  • Affiliations:
  • -;-

  • Venue:
  • Management Science
  • Year:
  • 1998

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Abstract

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.