The Effectiveness of Field Price Discretion: Empirical Evidence from Auto Lending

References

• Agrawal V, Ferguson M (2007) Bid-response models for customized pricing. J. Revenue Pricing Management 6(3):212–228.Crossref, Google Scholar
• Bhardwaj P (2001) Delegating pricing decisions. Marketing Sci. 20(2): 143–169.Link, Google Scholar
• Baker WL, Marn MV, Zawada CC (2010) The Price Advantage (John Wiley & Sons, Hoboken, NJ).Crossref, Google Scholar
• Bijmolt THA, van Heerde HJ, Pieters RGM (2005) New empirical generalizations on the determinants of price elasticity. J. Marketing Res. 42(2):141–156.Crossref, Google Scholar
• Breshanan T (1997) The Apple-Cinnamon Cheerios war: Valuing new goods, identifying market power, and economic measurement. Working paper, Department of Economics, Stanford University, Stanford, CA.Google Scholar
• Cachon GP, Olivares M (2010) Drivers of finished-goods inventory in the U.S. automobile industry. Management Sci. 56(1):202–216.Link, Google Scholar
• Cachon GP, Galliano S, Olivares M (2013) Does adding inventory increase sales? Evidence of a scarcity effect in U.S. automobile dealerships. Columbia Business School Research Paper 13-60, Columbia University, New York. http://papers.ssrn.com/abstract=2286800.Google Scholar
• Caufield S (2012) Consumer credit pricing. Özer Ö, Phillips R, eds. The Oxford Handbook of Pricing Management (Oxford University Press, Oxford, UK), 138–153.Crossref, Google Scholar
• Cohen MA (2007) Imperfect competition in auto lending: Subjective markup, racial disparity, and class action litigation. Vanderbilt Law and Economics Research Paper 07-01, Vanderbilt University, Nashville, TN.Google Scholar
• Coughlan AT (1993) Salesforce compensation: A review of MS/OR advances. Eliashberg J, Lilien GL, eds. Marketing, Handbook in Operations Research and Management Science, Vol. 5 (Elsevier, Amsterdam), 611–651.Crossref, Google Scholar
• Ebbes P, Papies D, van Heerde HJ (2011) The sense and non-sense of holdout sample validation in the presence of endogeneity. Marketing Sci. 30(6):1115–1122.Link, Google Scholar
• Foster EM (1997) Instrumental variables for logistic regression: An illustration. Soc. Sci. Res. 26(4):487–504.Crossref, Google Scholar
• Frenzen H, Hansen A, Krafft M, Mantrala MK, Schmidt S (2010) Delegation of pricing authority to the sales force: An agency-theoretic perspective of its determinants and impact on performance. Internat. J. Res. Marketing 27(1):58–68.Crossref, Google Scholar
• Gelber SM (2008) Horse Trading in the Age of Cars: Men in the Marketplace (Johns Hopkins University Press, Baltimore).Google Scholar
• Hausman JA (1997) Valuation of new goods under perfect and imperfect competition. Bresnahan TF, Gordon R, eds. The Economics of New Goods (University of Chicago Press, Chicago), 209–248.Google Scholar
• Homburg C, Jensen O, Hahn A (2012) How to organize pricing? Vertical delegation and horizontal dispersion of pricing authority. J. Marketing 76(5):49–69.Crossref, Google Scholar
• Joseph K (2001) On the optimality of delegating pricing authority to the sales force. J. Marketing 65(1):62–70.Crossref, Google Scholar
• Kalkanci B, Chen K-Y, Erhun F (2011) Contract complexity and performance under asymmetric demand information: An experimental evaluation. Management Sci. 57(4):689–704.Link, Google Scholar
• Kuo C-W, Ahn H-S, Aydın G (2011) Dynamic pricing of limited inventories when customers negotiate. Oper. Res. 59(4):882–897.Link, Google Scholar
• Kuo C-W, Ahn H-D, Aydın G (2013) Pricing policy in a supply chain: Negotiation or posted pricing. Production Oper. Management 22(3):626–641.Crossref, Google Scholar
• Lal R (1986) Delegating pricing responsibility to the salesforce. Marketing Sci. 5(2):159–168.Link, Google Scholar
• Lesaffre E, Marx BD (1993) Collinearity in generalized linear regression. Comm. Statist. Theory Methods 22(7):1933–1952.Crossref, Google Scholar
• Li J, Granados N, Netessine S (2014) Are consumers strategic? Structural estimation from the air-travel industry. Management Sci. 60(9):2114–2137.Link, Google Scholar
• Mishra BK, Prasad A (2004) Centralized pricing versus delegating pricing to the salesforce under information asymmetry. Marketing Sci. 23(1):21–27.Link, Google Scholar
• Mishra BK, Prasad A (2005) Delegating pricing decisions in competitive markets with symmetric and asymmetric information. Marketing Sci. 24(3):490–497.Link, Google Scholar
• Moreno A, Terwiesch C (2013) The effects of product line breadth: Evidence from the automotive industry. Working paper, Northwestern University, Evanston, IL. http://ssrn.com/abstract=2241384.Google Scholar
• Moreno A, Terwiesch C (2014) Pricing and production flexibility: An empirical analysis of the U.S. automotive industry. Working paper, Northwestern University, Evanston, IL. http://ssrn.com/abstract=2188246.Google Scholar
• Olivares M, Cachon GP (2009) Competing retailers and inventory: An empirical investigation of General Motors' dealerships in isolated U.S. markets. Management Sci. 55(9):1586–1604.Link, Google Scholar
• Oliver Wyman, Efma (2012) Pricing at European retail banks. Report, Oliver Wyman, New York, and Efma, Paris.Google Scholar
• Özer Ö, Zheng K (2012) Behavioral issues in pricing management. Özer Ö, Phillips R, eds. The Oxford Handbook of Pricing Management (Oxford University Press, Oxford, UK), 415–464.Crossref, Google Scholar
• Petrin A, Train K (2002) Omitted product attributes in discrete choice models. Working paper, Department of Economics, University of California, Berkeley, Berkeley.Crossref, Google Scholar
• Petrin A, Train K (2010) A control function approach to endogeneity in consumer choice models. J. Marketing Res. 47(1):370–379.Crossref, Google Scholar
• Phillips RL (2005) Pricing and Revenue Optimization (Stanford University Press, Palo Alto, CA).Crossref, Google Scholar
• Phillips RL (2012a) Customized pricing. Özer Ö, Phillips R, eds. The Oxford Handbook of Pricing Management (Oxford University Press, Oxford, UK), 465–491.Crossref, Google Scholar
• Phillips RL (2012b) Why are prices set the way they are? Özer Ö, Phillips R, eds. The Oxford Handbook of Pricing Management (Oxford University Press, Oxford, UK), 13–44.Crossref, Google Scholar
• Phillips RL, Raffard R (2011) Price-driven adverse selection in consumer lending. Working paper, Center for Pricing and Revenue Management, Columbia University, New York. http://www8.gsb.columbia.edu/cprm/sites/cprm/files/files/Working%20Papers/2011-3-Price-Driven-Adverse-Selection.pdf.Google Scholar
• Poon M (2007) Scorecards as devices for consumer credit: The case of Fair, Isaac & Company Incorporated. Callon M, Millo Y, Muniesa F, eds. Market Devices (Blackwell, Malden, MA), 284–306.Crossref, Google Scholar
• Rivers D, Vuong QH (1988) Limited information estimators and exogeneity tests for simultaneous probit models. J. Econometrics 39(3):347–366.Crossref, Google Scholar
• Roth S, Woratschek H, Pastowski S (2006) Negotiating prices for customized services. J. Service Res. 8(4):316–329.Crossref, Google Scholar
• Simonetto M, Montan L, Meehan J, Kaji J (2012) Structuring and managing an effective pricing organization. Özer Ö, Phillips R, eds. The Oxford Handbook of Pricing Management (Oxford University Press, Oxford, UK), 825–853.Crossref, Google Scholar
• Stephenson RP, Cron WL, Frazier GL (1979) Delegating pricing authority to the salesforce: The effects on sales and profit performance. J. Marketing 43(Spring):21–28.Crossref, Google Scholar
• Taylor TA (2002) Supply chain coordination under channel rebates with sales effort effects. Management Sci. 48(8):992–1007.Link, Google Scholar
• Veeraraghavan S, Vaidyanathan R (2012) Measuring seat value in stadiums and theaters. Production Oper. Management 21(1): 49–68.Crossref, Google Scholar
• Villas-Boas JM, Winer RS (1999) Endogeneity in brand choice models. Management Sci. 45(10):1324–1328.Link, Google Scholar
• Vulcano G, van Ryzin G, Chaar W (2010) Choice-based revenue management: An empirical study of estimation and optimization. Manufacturing Service Oper. Management 12(3):371–392.Link, Google Scholar
• Weinberg CB (1975) An optimal commission plan for salesmen’s control over price. Management Sci. 21(8):937–943.Link, Google Scholar
• Wooldridge JM (2002) Econometric Analysis of Cross Section and Panel Data (MIT Press, Cambridge, MA).Google Scholar