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Consumer Learning and Firm Dynamics
Mahone, Zachary L. - 2019
We propose a general equilibrium model of industry where consumers learn about firms' unobserved product quality over time. Because consumers learn through purchase decisions, price setting is a crucial lever through which firms manipulate future demand. We map equilibrium policies to a range of...
Persistent link: https://www.econbiz.de/10012863620
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Consumer learning and firm dynamics
Mahone, Zachary; Rebessi, Filippo - 2019
Persistent link: https://www.econbiz.de/10012062527
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Habit forming consumers and firm dynamics
Fishman, Arthur; Hellman, Ziv; Weiss, Avi - In: Journal of economic dynamics & control 154 (2023), pp. 1-8
Persistent link: https://www.econbiz.de/10014479693
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Uncertain Demand, Consumer Loss Aversion, and Flat-Rate Tariffs
Herweg, Fabian; Mierendorff, Konrad - 2011
We consider a model of firm pricing and consumer choice, where consumers are loss averse and uncertain about their future demand. Possibly, consumers in our model prefer a flat rate to a measured tariff, even though this choice does not minimize their expected billing amount - a behavior in line...
Persistent link: https://www.econbiz.de/10014184126
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Capacity Choice under Uncertainty with Product Differentiation
Behrens, Christiaan - 2012
product differentiation into account. We study the impact of capacity costs, demand uncertainty, and vertical and horizontal …
Persistent link: https://www.econbiz.de/10013098833
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Uncertain demand, consumer loss aversion, and flat-rate tariffs
Herweg, Fabian - 2010
The so called flat-rate bias is a well documented phenomenon caused by consumers’ desire to be insured against fluctuations in their billing amounts. This paper shows that expectation-based loss aversion provides a formal explanation for this bias. We solve for the optimal two-part tariff when...
Persistent link: https://www.econbiz.de/10003987825
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Uncertain demand, consumer loss aversion, and flat-rate tariffs
Herweg, Fabian; Mierendorff, Konrad - 2011
The so called flat-rate bias is a well documented phenomenon caused by consumers; desire to be insured against fluctuations in their billing amounts. This paper shows that expectation-based loss aversion provides a formal explanation for this bias. We solve for the optimal two-part tariff when...
Persistent link: https://www.econbiz.de/10009236785
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Uncertain demand, consumer loss aversion, and flat-rate tariffs
Herweg, Fabian; Mierendorff, Konrad - 2011
We consider a model of firm pricing and consumer choice, where consumers are loss averse and uncertain about their future demand. Possibly, consumers in our model prefer a flat rate to a measured tariff, even though this choice does not minimize their expected billing amount - a behavior in line...
Persistent link: https://www.econbiz.de/10009739169
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Uncertain demand, consumer loss aversion, and flat-rate tariffs
Herweg, Fabian - 2010
The so called flat-rate bias is a well documented phenomenon caused by consumers' desire to be insured against fluctuations in their billing amounts. This paper shows that expectation-based loss aversion provides a formal explanation for this bias. We solve for the optimal two-part tariff when...
Persistent link: https://www.econbiz.de/10008822064
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Does Uncertainty Matter? Consumer Behaviour Under Three-Part Tariffs
Lambrecht, Anja - 2011
three-part tariffs and assess how consumer demand uncertainty impacts tariff choice. We develop a discrete/continuous model … accurately. Our empirical work shows that demand uncertainty is a key driver of choice among three-part tariffs. Consumers …, demand uncertainty decreases consumer surplus and increases provider revenue. A further analysis of consumers' responsiveness …
Persistent link: https://www.econbiz.de/10012757055