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As of 2018 there are more than 8,000 retail off-price stores in operation worldwide, within the 20 largest off-price networks (their total number equivalent to dozens and even a few thousand stores). The global turnover of the segment as of the year 2017 is more than 60 billion dollars (approx. 2% of the whole fashion industry volume, including ...
The economist Alex Tabarrok has argued, that the success of this promotion lies in the fact that consumers value the first unit significantly more than the second one. So compared to a seemingly equivalent "Half price off" promotion, they may only buy one item at half price, because the value they attach to the second unit is lower than even the discounted price.
For price discrimination to succeed, a seller must have market power, such as a dominant market share, product uniqueness, sole pricing power, etc. [9] Some prices under price discrimination may be lower than the price charged by a single-price monopolist. Price discrimination can be utilized by a monopolist to recapture some deadweight loss.
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