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This paper analyzes prominence in a homogeneous product market where two firms simultaneously choose both prices and price complexity levels. Market-wide complexity results in consumer confusion. Confused consumers are more likely to buy from the prominent firm. In equilibrium, there is...
Persistent link: https://www.econbiz.de/10013297383
I consider an oligopoly model where, prior to price competition, firms invest in persuasive advertising and induce brand loyalty in consumers who would otherwise buy the cheapest alternative on the market. This setting, in which persuasive advertising is introduced to homogeneous product...
Persistent link: https://www.econbiz.de/10013297778
This paper analyzes granular price discrimination informed by consumer data on an online platform. The sellers compete in prices over two periods and can use information on consumers’ first period purchasing choices to discriminate in the second period. Under ‘coarse discrimination’, they...
Persistent link: https://www.econbiz.de/10014242152