When Is a Discount a Wall?

Opublikowano: 2026-10-23

A discount is usually the shape of competition. But can the structure of a discount render the purchase of a cheaper rival more expensive? This episode starts with a classic pricing problem in FTC v. Syngenta & Corteva. A company may charge more for units with high willingness to pay and less for additional units. It can be done through quantity discounts or nonlinear pricing. There is nothing wrong with that per se. The puzzle starts when the rebate depends on the customer’s proportion of purchases from the seller, rather than just the total amount bo...