Causes and Consequences of Price Premiums
JOURNAL OF BUSINESS, Vol. 69, No. 4, October 1996
Posted: 18 Sep 1996
Existing literature that argues for the prevalence of price premiums is examined. An evaluation of an extant model identifies several possible boundary conditions that limit its applicability. A set of propositions is developed based on these boundary conditions, linking buyer, seller and market factors to the magnitude of price premiums that should be available. Alternative means for empirical testing of the propositions are offered, and some implications and applications of this line of thinking for pricing and brand management are described.
JEL Classification: L1
Suggested Citation: Suggested Citation