Showing 1 - 10 of 405
We extend the theory of advertising as a quality signal, using a model where an entrant can choose to advertise by … comparing its product to that of an established incumbent. Comparative advertising, comparing quality of one’s own product to …
Persistent link: https://www.econbiz.de/10005007232
The paper formalizes the intuition that brands are consumed for image reasons and that advertising creates a brand's image. The key idea is that advertising informs the public of brand names and creates the possibility of conspicuous consumption by rendering brands a signalling device. In a...
Persistent link: https://www.econbiz.de/10010366557
News media operate in two-sided markets, offering bundles of content to readers as well as selling readers' attention to advertisers. Technological innovations in content delivery, such as the advent of broadcast television or of the Internet, affect both sides of the market, threatening the...
Persistent link: https://www.econbiz.de/10012841710
I study optimal information provision by a search goods seller. While the seller controls a consumer's pre-search information, which decides whether she will engage in costly search for the product, he cannot control her post-search information because the consumer would inevitably learn the...
Persistent link: https://www.econbiz.de/10013244049
We study the optimal customer-acquisition and customer-retention decisions of the representative firm in a dynamic competitive industry. We find that the optimal per-customer retention effort depends positively on customer profitability and is constant over time. The endogenous effective...
Persistent link: https://www.econbiz.de/10013044455
that these services differ in various quality measures, such as bandwidth, content, or failure rates. For the firms, the … provision of high-quality services is more costly than the provision of low-quality services. Conversely, consumers have a … selecting the optimal service quality. While carefully recognizing the technological, legal and economic framework, I have …
Persistent link: https://www.econbiz.de/10014047236
We consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in … knowledge: some consumers know both the prices and quality of the products offered, some know only the prices and some know …-inefficiency of the price/quality offers. But, better price/quality combinations are signalled with lower prices in one type and with …
Persistent link: https://www.econbiz.de/10011376636
health care system is to encourage providers to keep costs down without skimping on quality. The purpose of this paper is to … analyse the effect of price regulation and free choice on quality in physiotherapy organised by the Social Insurance … effect of the regulation and for this task we have defined the regulated and non-regulated firms and their quality before and …
Persistent link: https://www.econbiz.de/10011668949
damage quality when information is poor. Evidence on whether this fear is well-founded is scarce. We provide evidence using a … research that has relied on indicators of the quality of urgent treatments, we take advantage of the plausible absence of … selection bias in our setting to identify the effect on quality of non-acute hip replacements. Using administrative data on all …
Persistent link: https://www.econbiz.de/10011823733
General Practitioners (GP) have limited means to compete. As quality is hard to observe by patients, GPs have … incentives to signal quality by using instruments patients perceive as quality. …
Persistent link: https://www.econbiz.de/10011263928