Showing 1 - 10 of 1,335
Using a standard strategic pricing game, I determine how sellers set prices when facing buyers who are “rationally inattentive” to information about product quality. Two cases are studied: strategically sophisticated buyers who are rationally inattentive to exogenous information about...
Persistent link: https://www.econbiz.de/10012973519
We analyze subjects' eye movements while they make decisions in a series of one-shot games. The majority of them perform a partial and selective analysis of the payoff matrix, often ignoring the payoffs of the opponent and/or paying attention only to specific cells. Our results suggest that...
Persistent link: https://www.econbiz.de/10009709528
We propose a model for the evolution of market share in presence of social influence. We study a simple market in which the individuals arrive sequentially and choose one of the available products. Their decision of which product to choose is a stochastic function of the inherent quality of the...
Persistent link: https://www.econbiz.de/10014180550
The Web is the largest human information construct in history transforming our society. How can we understand, measure and model the Web evolution in order to design effective policies and optimize its social benefit? Early measurements of the Internet traffic and the Web graph indicated the...
Persistent link: https://www.econbiz.de/10014187040
This paper considers duopolistic firms targeting informative messages to consumers who share information locally with their neighbors in the network graph. A monopolist targets efficiently by sending messages to a parsimonious set of nodes that leave the whole population informed either directly...
Persistent link: https://www.econbiz.de/10014044211
A firm’s choices can shape patterns of consumer communication about its product. This paper examines the problem for a firm that can both set price and target sales when selling a product of hidden, exogenous quality over two sales rounds to consumers who share information locally with their...
Persistent link: https://www.econbiz.de/10014044472
We study optimal pricing in the presence of recommender systems. A recommender system affects the market in two ways: (i) it creates value by reducing product uncertainty for the customers and hence (ii) its recommendations can be offered as add-ons which generate informational externalities....
Persistent link: https://www.econbiz.de/10014059057
We investigate how the selection process of a leader affects team performance with respect to social learning. We use a lab experiment in which an incentivized guessing task is repeated in a star network with the leader at the center. Leader selection is either based on competence, on...
Persistent link: https://www.econbiz.de/10011794457
In markets with search frictions, consumers can acquire information about goods either through costly search or from friends via word-of-mouth (WOM) communication. How do sellers’ market power react to a very large increase in the number of consumers’ friends with whom they engage in WOM?...
Persistent link: https://www.econbiz.de/10012671888
Consumers can acquire information through their own search efforts or through their social network. Information diffusion via word-of-mouth communication leads to some consumers free-riding on their “friends” and less information acquisition via active search. Free-riding also has an...
Persistent link: https://www.econbiz.de/10012672128