Price Competition and Consumer Confusion

Price Competition with Consumer Confusion

This paper proposes a model in which identical sellers of a homogenous product compete in both prices and price frames (i.e., ways to present price information). We model price framing by assuming that firms’ frame choices affect the comparability of their price offers: consumers may fail to compare prices due to frame differentiation, and due to frame complexity. In the symmetric equilibrium t...

An Investigation of the Antecedents of Consumers' Confusion in Purchasing an Outbound Package tour in the City of Isfahan by Fuzzy Delphi Method

The concept of consumer confusion has gained a considerable attention in consumer behavior literature during recent years. However,it is considered as a relatively new concept in marketing, particularly in businesses that provide intangible products such as tourism. This study aimed to investigate factors that potentially influence consumer confusion proneness in purchasing outbound package tou...

Reference-Dependent Utility, Product Variety and Price Competition

Reference-Dependent Utility, Product Variety and Price Competition Products such as iPhone, Coca-Cola and Tide serve as the standard against which consumers evaluate other members of the category. Empirical evidence suggests consumers care about not only the consumption utility derived from a product but also the gain-loss utility in comparison to the reference product of the category. This pap...

Joint optimization of pricing and capacity allocation for two competitive airlines under demand uncertainty

Nowadays, airline industries should overcome different barriers regarding the fierce competition and changing consumer behavior. Thus, they attempt to focus on joint decision making which enables them to set pricing and capacity allocation to maximize their profits. In this research, we develop a model to optimize pricing and capacity allocation in a duopoly of single-flight leg for two competi...

Batch Code Obliteration Violates Trademark and Unfair Competition Laws by Causing "Likelihood of Consumer Confusion"