Price concessions can come in the form of cash rebates, which reduce the transaction price, or in the form of additional goods and services. Offering goods and services instead of lower prices has several advantages during a crisis : Price: The nominal price level is not harmed. Profit: Assuming the same percentage, the supplier is better off profi

Price concessions can come in the form of cash rebates, which reduce the transaction price, or in the form of additional goods and services. Offering goods and services instead of lower prices has several advantages during a crisis : Price: The nominal price level is not harmed. Profit: Assuming the same percentage, the supplier is better off profi

But a closer look at the data reveals that the market responds more favorably to cash deals and those done at small premiums than to deals financed with stock at large premiums.