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A monopolist offers a product to a market of consumers with heterogeneous quality preferences. Although initially uninformed about the product quality, they learn by observing past purchase decisions and reviews of other consumers. Our goal is to analyze the social learning mechanism and its...
Persistent link: https://www.econbiz.de/10012940365
In this paper we study the implications of service level guarantees (SLGs) in a model of oligopoly competition where providers compete to deliver a service to congestion-sensitive consumers. The SLG is a contractual obligation on the part of the service provider: regardless of how many customers...
Persistent link: https://www.econbiz.de/10014048265
We study optimal pricing strategies for ride-sharing platforms, such as Lyft, Sidecar, and Uber. Analysis of pricing in such settings is complex: On one hand these platforms are two-sided -- this requires economic models that capture the incentives of both drivers and passengers. On the other...
Persistent link: https://www.econbiz.de/10013005215
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When a new product or technology is introduced, potential consumers can learn its quality by trying the product, at a risk, or by letting others try it and free-riding on the information that they generate. We propose a dynamic game to study the adoption of technologies of uncertain value, when...
Persistent link: https://www.econbiz.de/10014037354
Online platforms collect rich information about participants and then share some of this information back with them to improve market outcomes. In this paper we study the following information disclosure problem in two-sided markets: If a platform wants to maximize revenue, which sellers should...
Persistent link: https://www.econbiz.de/10013241000