In 1990,Chrysler Offered Rebates on Almost All of Its Cars

question 38

Essay

In 1990,Chrysler offered rebates on almost all of its cars.In May of that year it announced that the rebate program would end on June 30.It also announced that no further rebates would be offered for the rest of the year.Chrysler guaranteed this by promising that if it did offer any rebates larger than those offered between May 1 and June 30,all customers who purchased cars before the new rebate would get the full rebate.How should this announcement have affected the pricing behavior of other car manufacturers?

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Definitions:

Rage

An intense, uncontrolled expression of anger that can manifest physically or verbally.

Retribution

A principle of justice where punishment is imposed on someone as vengeance for a wrong or criminal act.

Personality Development

The process of developing and refining an individual's character, traits, and behavioral patterns from infancy through adulthood.

Biological Forces

The innate and biological factors that influence human behavior, such as genetics, brain structures, and the biochemical processes.