Publications
Publications
- April 1995
- HBS Case Collection
Toy Game, The
Abstract
Companies sometimes issue rebate coupons entitling the holder to a certain amount off the price of their products. This case explores the effects of rebate coupons on the game between two companies that operate in a market where there is very little underlying customer loyalty. Analysis indicates that all sellers gain, even if only one seller issues rebates. When all sellers issue rebates, all sellers gain more. The effect is seen to depend on the presence of an underlying rule of the marketplace ("one-price-to-all").
Keywords
Citation
Brandenburger, Adam M. "Toy Game, The." Harvard Business School Case 795-121, April 1995.