Monday, 23 March 2015

Forbes

This was a report on a study on price coherence, where consumers pay the same price for a given product or service, whether buying it directly from its source or through an intermediary, by Professor Julian Wright from the Department of Economics at the NUS Faculty of Arts and Social Sciences and Associate Professor Benjamin G. Edelman from Harvard Business School. The study found that price coherence actually leads to inflated retail prices, unnecessary usage of the intermediaries’ services and an overall reduction in consumer welfare.