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Verizon and Netflix — both looking to reel in new subscribers — are relaunching their special promotional offer giving the telco’s customers 12 months free of Netflix’s Premium plan.
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.
Note: Click the on-page coupon box for the extra discount. If you have Amazon Prime, you’ll get free shipping, of course. Not yet a member? No problem. You can sign up for your free 30-day trial ...
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