Why Do Manufacturers Issue Coupons? An Empirical Analysis of Breakfast Cereals

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Price Discrimination and Imperfect Competition (2003, background): “…Leslie (1999)– Broadway theater, Busse and Rysman (2001)–yellow pages advertising, Clerides (2001b)–books, Cohen (2001)–paper towels, Crawford and Shum (2001)–cable television, McManus (2001)–specialty coffee, Nevo and Wolfram (2002)–breakfast cereal, Besanko, Dube and Gupta (2001)–ketchup.”
Computer Mediated Transactions (2010, methodology): “A prominent example is supermarket scanner data, which has been widely used in economic analysis (see Nevo and Wolfram 2002, Hendel and Nevo 2006 for just two examples).”
Recent developments in the economics of price discrimination (2006, background): “40 Nevo and Wolfram (2002) present evidence consistent with the hypothesis that price discrimination via coupons in the breakfast cereal market exhibits best-response asymmetry, and that the introduction of coupons leads to a fall in all prices.”
Price Discrimination and Competition (2007, methodology): “With this insight, Corts (1998) shows that for any pair of prices 35 Nevo and Wolfram (2002) and Besanko, Dube and Gupta (2003) empirically assess the possibility of allout competition in breakfast cereals and ketchup, respectively.”