Research Archive

A Cooperative Game-Theory Model for Quantity Discounts

Rajeev Kohli, Heungsoo Park

Publication type: Journal article

Research Archive Topic: Business Economics and Public Policy, Marketing, Operations


Quantity discounts offered by a monopolist are considered in the context of a bargaining problem in which the buyer and seller negotiate over the order quantity and the average unit price. All-units and incremental quantity discounts that permit transactions at a negotiated outcome are described. The effect of risk sensitivity and bargaining power on quantity discounts are discussed for alternative bargaining models.
Download PDF


Kohli, Rajeev, and Heungsoo Park. "A Cooperative Game-Theory Model for Quantity Discounts." Management Science 35, no. 5 (June 1989): 693-70.

Each author name for a Columbia Business School faculty member is linked to a faculty research page, which lists additional publications by that faculty member.

Each topic is linked to an index of publications on that topic.