including product positioning (Schmalensee,1,978;Scherer,1979) and pricing (Nevo,2001). Our
article provides an analysis of manufacturers 'short-run, nonprice strategies.
The article is organized as follows.In Section 2 we review various theoretical reasons why
manufacturers might issue coupons and the relations they imply between coupons and prices. We
start with a model of static monopoly price discrimination and then describe how changes to some
of its assumptions alter its key predictions.In Section 3 we describe our data.Section 4 uses these
data to shed light on the relevance of the different theories and Section 5 concludes