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Targeted pricing and customer data sharing among rivals

Jentzsch, Nicola; Sapi, Geza; Suleymanova, Irina - In: International Journal of Industrial Organization 31 (2013) 2, pp. 131-144

It is increasingly observable that competitors in different industries share customer data, which can be used for targeted pricing. We propose a modified Hotelling model with two-dimensional consumer heterogeneity to analyze the incentives for such sharing and its ensuing welfare effects. We...

Persistent link: https://www.econbiz.de/10010636420

Consumer privacy in oligopolistic markets: Winners, losers, and welfare

Taylor, Curtis; Wagman, Liad - In: International Journal of Industrial Organization 34 (2014) C, pp. 80-84

Motivated by the unprecedented availability of consumer information on the Internet, we characterize the winners and losers from potential privacy regulation in the context of four commonly-used oligopoly models: a linear city model, a circular city model, a vertical differentiation model, and a...

Persistent link: https://www.econbiz.de/10010786471

Bidimensional vertical differentiation

Garella, Paolo G.; Lambertini, Luca - In: International Journal of Industrial Organization 32 (2014) C, pp. 1-10

In markets where product quality is important, more than one characteristic is usually necessary for producers to define product quality. Standard theory maintains that: (i) in a duopoly there will be a quality leader no matter whether the product can incorporate one or two vertical attributes;...

Persistent link: https://www.econbiz.de/10010738082

Better product at same cost, lower sales and lower welfare

Balan, David J.; Deltas, George - In: International Journal of Industrial Organization 31 (2013) 4, pp. 322-330

We consider a high-quality dominant firm facing a low-quality competitive fringe. We show that the dominant firm's quantity is (weakly) increasing in its quality if and only if its marginal cost (weakly) exceeds that of the fringe; otherwise it is strictly decreasing in quality. This result is...

Persistent link: https://www.econbiz.de/10010679069

Provider competition and healthcare quality: More bang for the buck?

Katz, Michael L. - In: International Journal of Industrial Organization 31 (2013) 5, pp. 612-625

Public and private entities around the world are trying to induce the provision of higher-quality health care by adopting institutional arrangements intended to promote competition among care providers. I selectively survey and supplement the literature to show that an increase in...

Persistent link: https://www.econbiz.de/10011051639

Informing the uninformed: How drug advertising affects check-up visits

Hosken, Daniel; Wendling, Brett - In: International Journal of Industrial Organization 31 (2013) 2, pp. 181-194

Direct-to-consumer drug advertising has recently become an important and controversial component of drug marketing. In … this paper we examine one of the claimed benefits of drug advertising: encouraging the undiagnosed to seek out medical … treatment. We measure how advertising affects an undiagnosed individual's decision to visit a physician for a check-up using …

Persistent link: https://www.econbiz.de/10010636419

Non-comparative versus comparative advertising of quality

Emons, Winand; Fluet, Claude - In: International Journal of Industrial Organization 30 (2012) 4, pp. 352-360

quality; in the second one, they send costly signals thereof. Under non-comparative advertising a firm advertises its own … quality, under comparative advertising a firm advertises the quality differential. In either scenario, under comparative … advertising the firms never advertise together which they may do under non-comparative advertising. Moreover, under comparative …

Persistent link: https://www.econbiz.de/10010573874

Incentives through consumer learning about tastes

Schumacher, Heiner - In: International Journal of Industrial Organization 37 (2014) C, pp. 170-177

advertising, advertising content, and consumer education. …

Persistent link: https://www.econbiz.de/10011117301

Information content of advertising: Empirical evidence from the OTC analgesic industry

Anderson, Simon P.; Ciliberto, Federico; Liaukonyte, Jura - In: International Journal of Industrial Organization 31 (2013) 5, pp. 355-367

We develop an empirical study of the information–persuasion trade-off in advertising using data on the information …

Persistent link: https://www.econbiz.de/10010730051

Commercial software, adware, and consumer privacy

Spiegel, Yossi - In: International Journal of Industrial Organization 31 (2013) 6, pp. 702-713

I study the choice between selling new software commercially and bundling it with ads and distributing it for free as adware. Adware allows advertisers to send targeted information to consumers which improves their purchasing decisions, but also entails a loss of privacy. I show that adware is...

Persistent link: https://www.econbiz.de/10010730062

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