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Ad-blockers enable consumers to block ads on websites. While ad-blockers began as user-oriented initiatives promising to block all ads, many now allow limited display of ads. Much of the ensuing debate has questioned the role and intent of the ad-blocker, viewing ad-blocking as a zero-sum game...
Persistent link: https://www.econbiz.de/10012847427
Many products have different attributes which appeal to the different segments of the market. We investigate how firms should position their products in a multi-attribute product market where consumers are heterogeneous in (1) the product attributes that they care about, and (2) their...
Persistent link: https://www.econbiz.de/10014128181
Many firms buy a production input from a competitor. However, managers often worry that this supply relationship may give their competitor valuable knowledge about new product innovations. We develop a two-period model in which a firm can buy an input from a competitor or a third party in each...
Persistent link: https://www.econbiz.de/10014345051
By making new product preannouncements (NPP) firms encourage consumers to postpone purchase and wait for the firms' new product that in turn cannibalizes current sales, both own and competitor's. Profitability of NPP depends on which firm's sales are cannibalized and relative margins on current...
Persistent link: https://www.econbiz.de/10013043002
Firms that must choose capacity in advance of observing uncertain or time varying demand sometimes have more inventory than their full price customers will consume. By pricing a limited quantity at below market clearing rates, “rationed promotions” allow sellers to recruit enough excess...
Persistent link: https://www.econbiz.de/10013045597
Merchants are wary of a platform entering as a competitor and adversely affecting sales and margins. A platform wanting to maximize profits is interested also in gaining consumer trust and confidence by providing credible quality information to consumers. As a practical matter, could a...
Persistent link: https://www.econbiz.de/10013220196
People make a wide variety of choices as consumers, managers, employers, and regulators. Most of these choices are not made in a vacuum but rather in a context of strategic interactions that make individual payoffs interdependent across the decision makers. This payoff interdependence leads to...
Persistent link: https://www.econbiz.de/10014178045
Price discrimination is generally thought to improve firm profits by allowing firms to extract more consumer surplus. In competition, however, price discrimination may also be costly to the firm because restrictive incentive compatibility conditions may allow the competing firm to gain market...
Persistent link: https://www.econbiz.de/10014062165
In today’s media ecosystem, advertisers face the challenge to create ad campaigns with the ability to engage consumers and ultimately increase conversions. Hence, they need guidance on how to design promising ad copies and on which websites to deliver these ads. In this study, the authors...
Persistent link: https://www.econbiz.de/10014032367
Managing merchants challenges a selling platform. Using a multi-sender framework we ask if a platform and a competing merchant’s prices can together signal product quality if consumers’ information is incomplete. We find that both separating and pooling equilibria exist but for separation...
Persistent link: https://www.econbiz.de/10014113592