Correction to: Better with buy now, pay later?: A competitive analysis (Quantitative Marketing and Economics, (2024), 22, 1, (23-61), 10.1007/s11129-023-09271-y)

Abstract

https://doi.org/10.1007/s11129-023-09271-y. The recently published paper has some errors in the main body. Here are the corrections that need to be updated: Page 32: The entire paragraph “In practice, there are a few different variants of BNPL programs that charge interest to consumers. We focus on the predominant version of the BNPL program that offers consumers interest-free loans (or installment purchase) to purchase a specific product.” needs to be replaced. The correct text is: “Because BNPL credit is at the retailer-product-consumer level, we do not need to model some aspects that would be critical in a model of credit cards and other forms of revolving credit. For instance, a consumer’s decision to avail of BNPL credit for a specific product can be modeled in isolation and separate from their other credit decisions. Similarly, a BNPL firm?s decision to approve a consumer’s BNPL credit application for a specific product being sold by a specific retailer is not the same as approving an open-ended revolving credit. In practice, there are a few different variants of BNPL programs that charge interest to consumers. We focus on the predominant version of the BNPL program that offers consumers interest-free loans (or installment purchase) to purchase a specific product.” Page 37: “Proof of Proposition 2” should read “Proposition 1”. Page 38: “Proposition 1” should read “Proposition 2”. Page 41: “Proof of Proposition 3” should read “Proposition 3”. Page 43: “Proposition 2” should read “Proposition 4”. Page 43: “Proposition 3” should read “Proposition 5”. Page 43: Table 1 title should be in the title case. Also, the table is missing the words “Note.” before the note at the bottom of the table. Page 49: Table 2 title should be in the title case. In the table, the first case (NN) has been merged with the table header. The header should only be “Profit Reduction with h_2 > 0”. Also, the table is missing the words “Note.” before the table notes appear at the bottom of the table. The original article has been corrected.