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The economist Alex Tabarrok has argued, that the success of this promotion lies in the fact that consumers value the first unit significantly more than the second one. So compared to a seemingly equivalent "Half price off" promotion, they may only buy one item at half price, because the value they attach to the second unit is lower than even the discounted price.
Coupon collector's problem. In probability theory, the coupon collector's problem refers to mathematical analysis of "collect all coupons and win" contests. It asks the following question: if each box of a given product (e.g., breakfast cereals) contains a coupon, and there are n different types of coupons, what is the probability that more ...
American Airlines, Inc. American Airlines is a major airline in the United States headquartered in Fort Worth, Texas, within the Dallas–Fort Worth metroplex. It is the largest airline in the world when measured by scheduled passengers carried, revenue passenger mile, and daily flights. American, together with its regional partners and ...
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