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Price Discrimination: Buy One get One Free

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Provide an intuitive explanation for why a "buy one, get one free" deal in not the same as a "half-price" sale. Fully discuss

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Solution Summary

Difference between buy one get one free (BOGO) and half off sales

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The main reason these deals are not the same is that consumers will buy more products under "buy one, get one free" (BOGO) than under "half-price" (HP). Many people who would normally only buy one unit -- and who would buy one unit at half the price under HP -- will instead buy two units under BOGO, because they have to buy two units to get the sale price. As long as the ...

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