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The effect of expert opinion on demand for experience goods is difficult to quantify, as the relationship between … purchases and reviews may be driven by product quality. Further, it is unclear whether a review-based demand effect is due to … providing quality or existence information. Using a retail field experiment to overcome these obstacles, we find a significant …
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The primary motivation for this paper is based on the challenge faced by a utility firm that generates its electricity through multiple coal fired thermal power plants. The utility firm operates in a regulated market and faces severe shortages of low priced coals that are critical to its...
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