We examine the relationship between objective and perceived quality for 241 products in 46 product categories over a period of 12 years. On average, we find that the effect of a change in objective quality is not fully reflected in customer perceptions of quality until after about six years. In...

Sometimes firms sell their products only for a limited time. This phenomenon can be interpreted as the firms' strategy to increase their profits by prohibiting consumers from learning their personal values of the product as time passes. This explanation can also be used to explain the firms'...

We offer an econometric framework that models consumer's consideration set formation as an outcome of her costly information search behavior. Because frequently purchased products are characterized by frequent price promotions of varying depths of discounts, a consumer faces significant...

We analyse the informational content of market shares and prices in a dynamic duopoly model in which consumers have heterogenous information on the quality differential (q) of two goods. It is shown that when firms are poorly informed about q, and therefore the ability of prices to reveal...