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Injunctions against false advertising
Baumann, Florian; Rasch, Alexander - 2019
false advertising by a firm in duopolistic competition where consumers can be distinguished according to whether or not they … form rational beliefs about the trustworthiness of advertising claims. We compare private and public law enforcement in the … form of the demand for injunctions against false advertising. From a welfare perspective, we show that it can be optimal …
Persistent link: https://www.econbiz.de/10012012317
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Injunctions against false advertising
Baumann, Florian; Rasch, Alexander - 2019
false advertising by a firm in duopolistic competition where consumers can be distinguished according to whether or not they … form rational beliefs about the trustworthiness of advertising claims. We compare private and public law enforcement in the … form of the demand for injunctions against false advertising. From a welfare perspective, we show that it can be optimal …
Persistent link: https://www.econbiz.de/10012197740
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Deceptive advertising with rational buyers
Piccolo, Salvatore; Tedeschi, Piero; Ursino, Giovanni - 2015
buyer into a bad purchase through (costly) deceptive advertising. We characterize the equilibrium set of the game and argue …
Persistent link: https://www.econbiz.de/10011774615
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Transparency, entry, and productivity
Gu, Yiquan; Wenzel, Tobias - 2011
This paper studies the relationship between transparency on the consumer side and productivity of firms. We show that more transparent markets are characterized by higher average productivity as firms with low productivity abstain from entering these markets. -- Market Transparency ; Firm...
Persistent link: https://www.econbiz.de/10009380266
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Targeted pricing and customer data sharing among rivals
Jentzsch, Nicola; Sapi, Geza; Suleymanova, Irina - 2012
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/10009558236
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Consumer's environmental awareness and the role of (green) entrepreneurship : lessons from environmental quality competition and R&D activities for environmental policy
Klarl, Torben - 2013
In the recent last years, in particular in the aftermath of the global financial and economic crisis, many countries initiated economic recovery plans with a major focus on stimulating green entrepreneurial activities to revive economic growth. Further, the recovery plans intend to improve a...
Persistent link: https://www.econbiz.de/10010239513
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Targeted pricing, consumer myopia and investment in customer-tracking technology
Baye, Irina; Sapi, Geza - 2014
We analyze how consumer myopia influences investment incentives into a technology that enables firms to track consumers' purchases and make targeted offers based on their preferences. In a two-period Hotelling setup firms may invest in customer-tracking technology. If a firm acquires the...
Persistent link: https://www.econbiz.de/10010246774
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Consumer flexibility, data quality and targeted pricing
Sapi, Geza; Suleymanova, Irina - 2013
We investigate how firms' incentives to acquire customer data for targeted offers depend on its quality. A two-dimensional Hotelling model is proposed where consumers are heterogeneous both with respect to their locations and transportation cost parameters (flexibility). Firms have perfect data...
Persistent link: https://www.econbiz.de/10010204781
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Salience, competition, and decoy goods
Herweg, Fabian; Müller, Daniel; Weinschenk, Philipp - 2016
We consider a brand manufacturer who can offer, next to its high-quality product, also a decoy good and faces competition by a competitive fringe that produces low quality. We show that the brand manufacturer optimally provides a decoy good to boost the demand for its main product if consumers'...
Persistent link: https://www.econbiz.de/10011557863
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A note on consumer flexibility, data quality and collusion
Hasnas, Irina - 2014
In this note we analyze the sustainability of collusion in a game of repeated interaction where firms can price discriminate among consumers based on two types of customer data. This work is related to Liu and Serfes (2007) and Sapi and Suleymanova (2013). Following Sapi and Suleymanova we...
Persistent link: https://www.econbiz.de/10010343547