Sofronis Clerides
Economist who described what shoppers do when the large size is the expensive one, which is largely nothing.
Who they are
Clerides works on industrial organisation and retail pricing. The work with Pascal Courty examines quantity surcharges, which arise when a firm promotes the smaller of two sizes.
Key papers
Clerides, S., & Courty, P. (2010). Sales, quantity surcharge, and consumer inattention. Working paper. This publication cites it as a working paper and has not obtained a published version.
Key ideas
Quantity surcharges occur when a firm markets a product in two sizes and offers a promotion on the small size.
Sales of the large size decrease only slightly, despite the small size being the cheaper option, which is a clear arbitrage opportunity left unused.
The behaviour is consistent with rationally inattentive consumers, with implications for consumer decision making, demand estimation and firm pricing.
Concepts on this site
Sources
- Working paper; no DOI obtained.