Causes and consequences of price premiums

Akshay Rao, Kent B. Monroe

Research output: Contribution to journalArticlepeer-review

100 Scopus citations


Existing literature that argues for the prevalence of price premiums is examined. An evaluation of an extant model identifies several possible boundary conditions that limit the applicability of the model. A set of propositions is developed based on these boundary conditions, linking buyer, seller, and market factors to the magnitude of price premiums that should be available. Alternative means for empirical testing of the propositions are offered, and some implications and applications of this line of thinking for pricing and brand management are described.

Original languageEnglish (US)
Pages (from-to)511-535
Number of pages25
JournalJournal of Business
Issue number4
StatePublished - Oct 1 1996


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