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Case ID: 795121
Solution ID: 34280
Toy Game Case Solution
Abstract
Some businesses often times provide discount coupons which allow coupon holders to gain a discount on their products. The case delves into the effect that these discount coupons have on the competition between two business that function in an industry where the customer loyalty is low. Study reveals that despite discounts being issued by one retailer, all the retailers in the market will benefit. However, when all the retailers collectively issue coupons, the total gain rises. This result is dependent on a law operational in the market: one-price-to-all.
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