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Umbrella Branding and External Certification

Hakenes, Hendrik; Peitz, Martin - C.E.P.R. Discussion Papers - 2007

In a market environment with random detection of product quality, a firm can employ umbrella branding as a strategy to convince consumers of the high quality of its products. Alternatively, a firm can rely on external certification of the quality of one or both of its products. We characterize...

Persistent link: https://www.econbiz.de/10005661499

Umbrella Branding and External Certification

Hakenes, Hendrik; Peitz, Martin - Max-Planck-Institut zur Erforschung von … - 2008

We study the interdependence of optimal tax and expenditure policies. An optimal policy requires that information on preferences is made available. We first study this problem from a general mechanism design perspective and show that efficiency is possible only if the individuals who decide on...

Persistent link: https://www.econbiz.de/10005272717

With a Little Help from My Enemy : Comparative Advertising as a Signal of Quality

Barigozzi, Francesca; Garella, Paolo G.; Peitz, Martin - 2007

Comparative advertising content differs from generic. We discover that dissipative advertising has consequences … depending upon content and cost. Comparison advertising may trigger legal action by rival firms that are named. In the model an … comparison can enhance the signaling potential of dissipative advertising. From the viewpoint of the entrant, the choice of …

Persistent link: https://www.econbiz.de/10014033624

Maintaining vs. Milking Good Reputation When Customer Feedback is Inaccurate

Mir Djawadi, Behnud - 2017

In Internet transactions, customers and service providers often interact once and anonymously. To prevent deceptive behavior a reputation system is particularly important to reduce information asymmetries about the quality of the offered product or service. In this study we examine the...

Persistent link: https://www.econbiz.de/10012949216

Temptation and Self-Control in a Market for Durable Goods

Caylor, William - 2016

Consumers may purchase durable goods on the basis of short-term "temptation," as well as their long-term interests. I adapt Gul and Pesendorfer's (2001) representation of self-control preferences to a market for durable goods. Consumers' temptation will increase profit, and can ameliorate a...

Persistent link: https://www.econbiz.de/10012987707

Product Quality and Social Influence

Mahfuze, Ashraful - 2021

This paper examines endogenous quality provision by firms with market power when social influence plays a role in consumers' purchasing decisions. A monopolist chooses price and quality of a single product to sell to consumers with unit mass. Quality has two dimensions: m-quality, which...

Persistent link: https://www.econbiz.de/10013226304

Purchase History and Product Personalization

Doval, Laura; Skreta, Basilikē - 2021

Product personalization opens the door to price discrimination. A rich product line allows for higher consumer satisfaction, but the mere choice of a product carries valuable information about the consumer that the firm can leverage for price discrimination. Controlling the degree of product...

Persistent link: https://www.econbiz.de/10013234171

Dynamic Monopoly and Consumers Profiling Accuracy

Laussel, Didier; Resende, Joana; Long, Ngo Van - 2021

Using a Markov-perfect equilibrium model, we show that the use of customer data to practice intertemporal price discrimination will improve monopoly profit if and only if information precision is higher than a certain threshold level. This U-shaped relationship lends support to a popular view...

Persistent link: https://www.econbiz.de/10013323970

Dynamic monopoly and consumers profiling accuracy

Laussel, Didier; Long, Ngo Van; Resende, Joana - 2021

Persistent link: https://www.econbiz.de/10012643538

Selling with Product Recommendation and Efficient Below-Cost Pricing

Xu, Wenji; Yang, Shuoguang - 2022

A long-lived seller sells a product by setting prices and making product recommendations to short-lived consumers arriving in continuous time. The seller receives consumer feedback about the product value, whose arrival rate depends on the instantaneous sales volume. Under a constant pricing...

Persistent link: https://www.econbiz.de/10013293744