Inattentive consumers and product quality
WebThis paper studies a model in which some consumers shop on the basis of price alone, without attention to potential differences in product quality. A firm may offer a low-quality product to exploit these inattentive consumers. In the unique symmetric equilibrium of the model, firms choose prices wit... WebCiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): This paper studies a model in which some consumers shop on the basis of price alone, without …
Inattentive consumers and product quality
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WebMay 1, 2012 · We study a market with rationally inattentive consumers who are unsure of the terms of the offers made by firms, but can acquire information about the terms at a … WebA firm may offer a low-quality product to exploit these inattentive consumers. In the unique symmetric equilibrium of the model, firms choose prices with mixed strategies, similarly …
WebMar 1, 2009 · Inattentive consumers and product quality Authors: Mark Armstrong University of Oxford Yongmin Chen University of Colorado Boulder Request full-text … Web2 days ago · Whether the Nutri-Score algorithm – which ranks food from -15 for the ‘healthiest’ products to +40 for those that are ‘less healthy’ – is the most effective at helping consumers make healthier choices or not, new research out of France suggests it is having a positive impact on the nutritional quality of products on-shelf.
WebJan 1, 2007 · In marketing research, information asymmetry suggests that consumers do not know exactly how the product is manufactured and what features it may possess (see … WebA firm may offer a low-quality product to exploit these inattentive consumers. In the unique symmetric equilibrium of the model, firms choose prices with mixed strategies, similarly to Varian (1980) in which some consumers purchase from a …
WebNov 1, 2013 · In this paper we incorporate consumer attentiveness, as well as the related endogenous search decision, into a model of quality disclosure. Our results suggest that firms should disclose less quality information as the share of partially informed consumers (informed about one firm but not the other) increases, or as consumer search costs …
WebAug 15, 2016 · The Demand for Natural Food Products. Clean labels are very popular throughout the industry and the demand for simple ingredients is influencing the sales of … sims 4 knife cc left handWebA firm may offer a low-quality product to exploit these inattentive consumers. In the unique symmetric equilibrium of the model, firms choose prices with mixed strategies, similarly … rca atlas 10 pro-s tablet manualWebthat is, controlling for movie quality, being #1 is associated with a $75 mil-lion increase in revenues, which is consistent with Proposition 1 . Testing Proposition 3. Proposition 3 states that, the greater the measure of inattentive consumers (parameter /), the greater the impact of being #1 through the awareness channel. rc a arms for 3 inch liftWebA firm may offer a low-quality product to exploit these inattentive consumers. In the unique symmetric equilibrium of the model, firms choose prices with mixed strategies, similarly … sims 4 knit cheatWebFeb 10, 2014 · 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 quality and strategically naïve buyers who are ... rca and rfoWebIn our model, inattentive consumers are unsophisticated and make no attempt to infer quality from a supplier's price.2 Indeed, a firm's price completely reveals its choice of quality in equilibrium, and a Bayesian consumer could infer quality even if she cannot observe it … rcaas on facebookWebThis paper examines the role of consumer preferences, costs, and price competition in determining the competitive product strategy of a firm. In the model studied here, there are two identical firms competing on product quality and price. They face consumers who prefer a higher quality product to a lower quality product, but differ in how much ... rca athletisme