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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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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 ...

Solution Summary

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