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We characterize a monopolist's optimal offer of service plans when only informed customers know already at the contracting stage whether their demand is high or low, while uninformed customers may learn their demand only after incurring some costs, if at all. While informed customers purchase...
Persistent link: https://www.econbiz.de/10010298707
Consider a differentiated product market in which all consumers are fully informed about match value and price at the time they make their purchasing decision. Initially, consumers become informed about the prices of all products in the market but do not know the match values. Some consumers...
Persistent link: https://www.econbiz.de/10010333807
Abstract: We develop a theory of imperfect competition with loss-averse consumers. All consumers are fully informed …
Persistent link: https://www.econbiz.de/10010334161