Showing 1 - 10 of 3,723
I analyse a homogeneous goods framework where firms receive binary and noisy signals about consumer valuations and consumers engage in sequential search. Firms have no information about consumers' search histories in the baseline model. Different search costs give rise to structurally different...
Persistent link: https://www.econbiz.de/10013236625
There is growing evidence that low-quality customer service prevails in the mobile telecommunications industry. In this … low-quality service levels are part of an equilibrium strategy for the firms. We also find that the inefficiency is due to …
Persistent link: https://www.econbiz.de/10014040056
In many markets, homogenous goods and services are sold both by large global frms and small local frms. Surprisingly, the large frms charge, often substantially, higher prices. Examples include hotels, airlines, and coffee shops. This paper provides a parsimonious model that can account for...
Persistent link: https://www.econbiz.de/10010315515
result in quality improvements. The market for quality goods is characterized by a natural oligopoly with three types of …
Persistent link: https://www.econbiz.de/10010291067
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
result in quality improvements. The market for quality goods is characterized by a natural oligopoly with three types of … ; innovation ; endogeneous growth ; product quality ; vertical product differentiation …
Persistent link: https://www.econbiz.de/10009697457
increase our understanding of the interplay of process R&D activities, the strategic price and environmental quality setting of … heterogeneous entrepreneurs in a market where consumers feel up to paying for environmental quality improvement of a vertically …-spillovers. Moreover, due to the strategic complementarities, both in prices as well as in environmental quality, a strategic effect …
Persistent link: https://www.econbiz.de/10010239513
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
We investigate how firms' incentives to acquire customer data for targeted offers depend on its quality. A two … of its quality. This increases profits but harms consumers. When consumers are relatively differentiated in flexibility …, data acquisition incentives depend on its quality. Only if the data is sufficiently precise, both firms acquire it and …
Persistent link: https://www.econbiz.de/10010204781
In many markets, homogenous goods and services are sold both by large global frms and small local frms. Surprisingly, the large frms charge, often substantially, higher prices. Examples include hotels, airlines, and coffee shops. This paper provides a parsimonious model that can account for...
Persistent link: https://www.econbiz.de/10003082673