) industry. I present an empirical discrete-choice model of limited information on the part of consumers, where advertising …

This chapter proposes an analysis of the role of advertising in the transmission of information in markets. It also … with particular attention to price advertising. Advertising that contains direct product information is then considered …, looking at the nature and the amount of such information provided by advertisers and including some considerations on legal …

-informative advertisements can affect people’s choices by influencing their perception of product quality. We present a model in which people can … learn about product quality by observing the choices of others. Consumers are, however, not able to fully distinguish … equilibrium the most observed product is always most likely to be of the highest quality. The analysis has important policy …

Consumer reviews may have perverse effects, including delays of adoption in new products of unknown quality when … adopters increases the quality reported in the reviews …

considering the informational role of a queue in a setting in which a firm can also adjust its price to signal its quality to … uninformed consumers. When the proportion of informed consumers is low, to separate on price a high-quality firm must raise its … the monopoly price. We characterize two pooling equilibria. In both equilibria, a high-quality firm on average has a …

of the monopolist’s information accuracy. Still, the profit effects of consumers’ identity management choices are shown … information acquisition (FIA), the firm can practice personalized pricing on returning passive customers, while in the case of … purchase history information (PHI), it has only enough information for group pricing. We show that in the FIA case, the …

discrimination will improve monopoly profit if and only if information precision is higher than a certain threshold level. This U …-shaped relationship lends support to a popular view that knowledge is good only if it is sufficiently refined. When information accuracy … reach a high enough level of information precision. Consumers expected surplus being a hump-shaped function of information …

discrimination will improve monopoly profit if and only if information precision is higher than a certain threshold level. This U …-shaped relationship lends support to a popular view that knowledge is good only if it is sufficiently refined. When information accuracy … reach a high enough level of information precision. Consumers expected surplus being a hump-shaped function of information …