Comments on: Why Do Companies Use Coupons And Rebates? http://weakonomics.com/2009/09/10/why-do-companies-use-coupons-and-rebates/ Everything That's Wrong With You And Your Money Wed, 17 Mar 2010 14:41:13 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: the weakonomist http://weakonomics.com/2009/09/10/why-do-companies-use-coupons-and-rebates/comment-page-1/#comment-2971 the weakonomist Sat, 12 Sep 2009 23:41:51 +0000 http://weakonomics.com/?p=2997#comment-2971 TAF, you're absolutely right regarding price discrimination. I seem to recall having a similar conversation in one of my econ classes. Great addition to the post! TAF, you’re absolutely right regarding price discrimination. I seem to recall having a similar conversation in one of my econ classes. Great addition to the post!

]]> By: Roger http://weakonomics.com/2009/09/10/why-do-companies-use-coupons-and-rebates/comment-page-1/#comment-2970 Roger Sat, 12 Sep 2009 17:32:12 +0000 http://weakonomics.com/?p=2997#comment-2970 I recall coupons being mentioned in my college economics course. The reason given was that they were a legal form of price discrimination. People who would be unwilling to buy the product at, say, $1.50 per serving (as in your example) could use a coupon and save their money, while people who are willing to pay the higher price (and lack coupons, either from lack of time to acquire them or lack of interest) end up paying full price. The company captures more business (at the cost of some profits that would be had if all the costumers paid full price) and ends up making a larger profit than they would otherwise. Just a thought on a possible alternative situation. .-= Roger´s last blog ..<a href="http://feedproxy.google.com/~r/theamateurfinancier/cFiv/~3/ix-hCxzzyTc/" rel="nofollow">Financial Lessons: Entrepreneurship</a> =-. I recall coupons being mentioned in my college economics course. The reason given was that they were a legal form of price discrimination. People who would be unwilling to buy the product at, say, $1.50 per serving (as in your example) could use a coupon and save their money, while people who are willing to pay the higher price (and lack coupons, either from lack of time to acquire them or lack of interest) end up paying full price. The company captures more business (at the cost of some profits that would be had if all the costumers paid full price) and ends up making a larger profit than they would otherwise. Just a thought on a possible alternative situation.
Roger´s last blog ..Financial Lessons: Entrepreneurship My ComLuv Profile

]]> By: Weekly Roundup: Great Personal Finance Articles and Blog Carnivals This Week http://weakonomics.com/2009/09/10/why-do-companies-use-coupons-and-rebates/comment-page-1/#comment-2967 Weekly Roundup: Great Personal Finance Articles and Blog Carnivals This Week Sat, 12 Sep 2009 13:25:04 +0000 http://weakonomics.com/?p=2997#comment-2967 [...] Why Do Companies Use Coupons And Rebates? - I drive my wife nuts because I often forget to mail in rebates.  I have lost hundreds of dollars thanks to my laziness.  Weakonomics has a great post talking about just this topic. [...] [...] Why Do Companies Use Coupons And Rebates? – I drive my wife nuts because I often forget to mail in rebates.  I have lost hundreds of dollars thanks to my laziness.  Weakonomics has a great post talking about just this topic. [...]

]]> By: 9/11 -A Day for Gratitude? http://weakonomics.com/2009/09/10/why-do-companies-use-coupons-and-rebates/comment-page-1/#comment-2963 9/11 -A Day for Gratitude? Fri, 11 Sep 2009 15:16:50 +0000 http://weakonomics.com/?p=2997#comment-2963 [...] wondered why companies use coupons and rebates? Weakonomics has some ideas on the [...] [...] wondered why companies use coupons and rebates? Weakonomics has some ideas on the [...]

]]> By: Roundup and Link Love: Oh No, Not Again Edition | The Wisdom Journal http://weakonomics.com/2009/09/10/why-do-companies-use-coupons-and-rebates/comment-page-1/#comment-2961 Roundup and Link Love: Oh No, Not Again Edition | The Wisdom Journal Fri, 11 Sep 2009 06:02:53 +0000 http://weakonomics.com/?p=2997#comment-2961 [...] wonder WHY companies use discounts, rebates, and coupons? Check out what the Weakonomist has to say about [...] [...] wonder WHY companies use discounts, rebates, and coupons? Check out what the Weakonomist has to say about [...]

]]> By: Josh http://weakonomics.com/2009/09/10/why-do-companies-use-coupons-and-rebates/comment-page-1/#comment-2960 Josh Fri, 11 Sep 2009 01:47:13 +0000 http://weakonomics.com/?p=2997#comment-2960 Hi Badass (LoL), Myself, as an Australian, would like to apologize for that lame article on the Australian website about 'Bad Ass Personal Finance Bloggers'. At least you got a mention I guess, shame there was no caricature of you. I put in a vote for you there too. Cheers, From Josh Hi Badass (LoL),

Myself, as an Australian, would like to apologize for that lame article on the Australian website about ‘Bad Ass Personal Finance Bloggers’. At least you got a mention I guess, shame there was no caricature of you. I put in a vote for you there too.

Cheers,
From Josh

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