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on Intellectual Property Rights |
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Issue of 2022‒03‒14
three papers chosen by Giovanni Ramello Università degli Studi del Piemonte Orientale “Amedeo Avogadro” |
| By: | Cesare Righi; Timothy Simcoe |
| Abstract: | Continuations allow inventors to add new claims to old patents, leading to concerns about inadvertent infringement and holdup. We study the use of continuations to obtain standard essential patents (SEPs), a setting where patents are easily linked to possibly infringing technology. Continuation filings increase after standard publication. This effect is larger when patent examiners are more lenient, and for applicants with licensing-based business models. Claims of SEPs also become more similar after standard publication, and late claiming is positively correlated with litigation. Our findings suggest widespread use of continuations to "invent patents" that are infringed by already-published standards. |
| Keywords: | patents, standards, standard essential patents, continuations |
| JEL: | K11 L15 O34 O38 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:1820&r= |
| By: | Béatrice Parguel (DRM - MLAB - Dauphine Recherches en Management - MLAB - DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique); Annalisa Fraccaro; Sandrine Macé |
| Abstract: | Purpose Going beyond odd and even prices, this paper aims to explore the rationale behind the widespread practice of setting prices ending in "50" or "80" in the luxury industry. The authors argue that when they set such prices, managers agree to reduce their profit margin to limit the anticipated guilt luxury consumers associate with luxury shopping while also protecting their brand luxury. The authors label these prices compromise prices and formally define compromise pricing as the practice of choosing a price's ending so that the price falls below (but not just below) a round number to boost sales without damaging brand luxury. Design/methodology/approach Following the observation of the overrepresentation of prices ending in "50" and "80" in the luxury clothing category, an experiment explores the impact of compromise prices on anticipated guilt and brand luxury in the luxury watch category. Then, to identify when luxury pricing managers typically favor compromise prices, multinomial regressions investigate prices collected on two online luxury fashion retailers for the luxury clothing and handbag categories. Findings Compromise prices reduce the anticipated guilt luxury consumers associate with luxury shopping compared with even prices while enhancing brand luxury compared with odd prices and interestingly, with even prices also. This finding gives rationale to luxury managers' preference for compromise prices in the ninth hundred (i.e. €X950, €X980), especially for higher-priced products, i.e. when the potential for price underestimation and/or the risk of damaging brand luxury are more important. Originality/value This research contributes to the field of luxury pricing by providing evidence to an original price-ending practice, coined compromise pricing, which consists in agreeing to a slight reduction in prices and unit margin to protect brand luxury. |
| Keywords: | Compromise pricing,price endings,anticipated guilt,brand luxury |
| Date: | 2021–09–27 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03503443&r= |
| By: | Annalisa Fraccaro; Sandrine Macé; Béatrice Parguel (DRM - MLAB - Dauphine Recherches en Management - MLAB - DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Two large samples of prices indicate that odd prices (i.e., prices just below a round number, for example €1,495 vs. €1,500) are used in the pricing of luxury products. An analysis of price endings suggests that luxury brand managers rely less on the drop-off mechanism than on the meaning mechanism, both of which have been used to show that odd prices influence consumers in the Fast-Moving Consumer Goods (FMCG) industry. Building on the odd-ending price justification effect, a conjoint analysis, indicating that a large proportion of luxury consumers prefer odd prices, supports the likely role of a guilt-relief mechanism in the pricing of luxury products. |
| Keywords: | Odd pricing,Luxury consumption,Justification effect,Conjoint analysis |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03503449&r= |