Promotional Design for Small Businesses: The Operational Value of Online Deals

  title={Promotional Design for Small Businesses: The Operational Value of Online Deals},
  author={Siming Li and Kejia Hu and Martin A. Lariviere},
Among the limited ways for small service providers to balance demand and supply, launching temporary consumer offer may be attractive. However, relatively little work has empirically examined whether and how such offers pay off service providers. In this paper, using a comprehensive dataset from two leading deal platforms in China, we empirically study a new business model: the online deal. Service providers, who face predictable demand swings and capacity constraints, launch online deals for… 
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