Emergence of product differentiation from consumer heterogeneity and asymmetric information
نویسندگان
چکیده
We introduce a fully probabilistic framework of consumer product choice based on quality assessment. It allows us to capture many aspects of marketing such as partial information asymmetry, quality differentiation, and product placement in a supermarket.
منابع مشابه
Heterogeneous Preferences and Location Choice with Multi-product Firms
This paper investigates whether the principle of minimum differentiation extends to the location choices of multi-product firms of different sizes supplying differentiated goods to consumers with heterogeneous tastes. Our analysis explicitly allows for the possibility that the resulting location equilibria will be asymmetric, and we compare the multiproduct equilibria with the location configur...
متن کاملDi ff erentiation , Asymmetric Information and International Mergers
Information asymmetry creates value and incentives for firms from different countries to merge. To demonstrate this point, we develop a model of international trade under oligopolistic competition and asymmetric information, in which domestic firms are informed of the local market demands, but foreign firms are not. By emphasizing two features of a merger between a domestic firm and a foreign f...
متن کاملEstimation of quantitative characteristics considering CPI microdata in Iran
The aim of this study is to estimate the known statistical characteristics of nominal price stickiness in the Iranian economy during the years 1390 to 1399 and at different commodity levels of microdata of consumer price index (including product category, Coicop commodity group, and the whole economy) and thus the stickiness between categories and product groups are also compared. For this purp...
متن کاملTrouble Spots in Online Direct-to-Consumer Prescription Drug Promotion: A Content Analysis of FDA Warning Letters
Background For the purpose of understanding the Food and Drug Administration’s (FDA’s) concerns regarding online promotion of prescription drugs advertised directly to consumers, this study examines notices of violations (NOVs) and warning letters issued by the FDA to pharmaceutical manufacturers. Methods The FDA’s warning letters and NOVs, which were issued to pharmaceutical companies over a...
متن کاملDeterministic versus Random Utility: Implied Patterns of Vertical Product Differentiation in a Multi-Product Monopoly
In this article we study patterns of vertical product differentiation in a multi‐product monopoly using a random utility model. Prior research shows that applying such a model in a multi‐product setting implies symmetric patterns of product differentiation in which all product variants of a single firm have the same characteristics. Assuming that preferences differ across consumers and ...
متن کامل