[01] Qiao Keyuan, Department of Economics & Finance, Shang Hai University, Shanghai, China.

The essence of the use of coupons is price discrimination that enterprises implement for different consumers. This paper studies the pricing equilibrium that companies use coupons from the game point of view. The research finds that in the oligopolistic market with transfer costs, the transfer cost urges the enterprises to use the coupons to differentiate the old and new consumers. And there was positive correlation between the discount rate of coupons and the transfer cost. In addition, this paper studies two kind of utility of coupons on enterprise: the competition utility and promotion utility of the oligarchs. Research shows that coupons increase the total utility of the enterprise.

Coupons, Price Discrimination, Transfer Costs, Hotelling Model

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