Download or read book Product Quality with Heterogeneous Consumers and Linear Pricing written by Hugh Sibly and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper considers a linear-pricing monopolist that conducts vertical product differentiation. Previous analyses consider customers who either have unit demand or firms who conduct nonlinear pricing. In this paper, customers' opportunity cost of time generates a demand for quality. Customers differ in either their demand, income or taste for quality. Differences in income and taste for quality are sources of vertical differentiation. The presence of quality distortion and the variety that may exhibit it are dependent on the functional form of the customer types' demand.

Download or read book Consumer Driven Demand and Operations Management Models written by Serguei Netessine and published by Springer Science & Business Media. This book was released on 2009-06-02 with total page 488 pages. Available in PDF, EPUB and Kindle. Book excerpt: This important book is by top scholars in supply chain management, revenue management, and e-commerce, all of which are grounded in information technologies and consumer demand research. The book looks at new selling techniques designed to reach the consumer.

Download or read book Managing Quality Under Heterogeneous Consumer Demand and Product Quality written by Miguel Carriquiry and published by . This book was released on 2005 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Heterogeneous consumer preferences for product quality and uncertainty written by Wolfgang Maennig and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Innovations in Bio Inspired Computing and Applications written by Ajith Abraham and published by Springer Nature. This book was released on 2023-03-27 with total page 951 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book highlights recent research on bio-inspired computing and its various innovative applications in information and communication technologies. It presents 85 high-quality papers from the 13th International Conference on Innovations in Bio-Inspired Computing and Applications (IBICA 2022) and 12th World Congress on Information and Communication Technologies (WICT 2022), which was held online during 15–17 December 2022. As a premier conference, IBICA–WICT brings together researchers, engineers and practitioners whose work involves bio-inspired computing, computational intelligence and their applications in information security, real-world contexts, etc. Including contributions by authors from 25 countries, the book offers a valuable reference guide for all researchers, students and practitioners in the fields of Computer Science and Engineering.

Download or read book The Routledge Handbook of Agricultural Economics written by Gail L. Cramer and published by Routledge. This book was released on 2018-07-17 with total page 806 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Handbook offers an up-to-date collection of research on agricultural economics. Drawing together scholarship from experts at the top of their profession and from around the world, this collection provides new insights into the area of agricultural economics. The Routledge Handbook of Agricultural Economics explores a broad variety of topics including welfare economics, econometrics, agribusiness, and consumer economics. This wide range reflects the way in which agricultural economics encompasses a large sector of any economy, and the chapters present both an introduction to the subjects as well as the methodology, statistical background, and operations research techniques needed to solve practical economic problems. In addition, food economics is given a special focus in the Handbook due to the recent emphasis on health and feeding the world population a quality diet. Furthermore, through examining these diverse topics, the authors seek to provide some indication of the direction of research in these areas and where future research endeavors may be productive. Acting as a comprehensive, up-to-date, and definitive work of reference, this Handbook will be of use to researchers, faculty, and graduate students looking to deepen their understanding of agricultural economics, agribusiness, and applied economics, and the interrelationship of those areas.

Download or read book Consumer Heterogeneity Uncertainty and Product Policies written by Song Lin and published by . This book was released on 2015 with total page 245 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three essays on the implications of consumer heterogeneity and uncertainty for firms' strategies. The first essay analyzes how firms should develop add-on policies when consumers have heterogeneous tastes and firms are vertically differentiated. The theory provides an explanation for the seemingly counter-intuitive phenomenon that higher-end hotels are more likely than lower-end hotels to charge for Internet service, and predicts that selling an add-on as optional intensifies competition, in sharp contrast to standard conclusions found in the literature. The second essay examines how firms should develop product and pricing policies when customer reviews provide informative feedback about improving product or service quality. The analysis provides an alternative view of customer reviews such that they not only can help consumers learn about product quality, but also can help firms learn about problems with their products or services. The third essay studies the implications of cognitive simplicity for consumer learning problems. We explore one viable decision heuristic - index strategies, and demonstrate that they are intuitive, tractable, and plausible. Index strategies are much simpler for consumers to use but provide close-to-optimal utility. They also avoid exponential growth in computational complexity, enabling researchers to study learning models in more-complex situations.

Download or read book Industrial Organization written by Paul Belleflamme and published by Cambridge University Press. This book was released on 2015-07-30 with total page 827 pages. Available in PDF, EPUB and Kindle. Book excerpt: Thoroughly revised according to classroom feedback, Industrial Organization: Markets and Strategies offers an up-to-date and rigorous presentation of modern industrial organization that blends theory with real-world applications and derives implications for firm strategy and competition policy. This comprehensive textbook acquaints readers with the most important models for understanding strategies chosen by firms with market power and shows how such firms adapt to different market environments. The second edition includes new and revised formal models and case studies. Formal models are presented in detail, and analyses are summarized in 'lessons' which highlight the main insights. Theories are complemented by numerous real-world cases that engage students and lead them to connect theories to real situations. Chapters include review questions, exercises, and suggestions for further reading to enhance the learning experience, and an accompanying website offers additional student exercises, as well as teaching slides.

Download or read book If at First You Don t Succeed written by Joanne Bowser-Angermann and published by . This book was released on 2000 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why are higher quality niches seen as intrinsically more profitable in business circles? Why do high quality products sometimes have a low real price, while it is unusual to see low quality products with high real prices? Can markets have quality differentiation as well as quality bunching? In this paper we develop a new model of quality which explains such phenomena. Our model builds on the idea that even if a customer chooses to purchase a product, it may fail to deliver'. If a product fails to deliver, the customer may wish to choose some other product. A higher quality product has a higher probability of delivering. We model this as a three stage game where firms first choose whether to enter or not, then in the second stage choose their quality and in the last stage, their price. Our model has a number of interesting predictions. First, it suggests that in equilibrium, a wider range of price per unit of quality is to be found for high quality goods than for low quality ones. Second, it provides a theoretical reason for why high quality niches may be more profitable, supporting the common business school idea that the money is at the high end.' Third, it suggests that the nature of the fixed costs of establishing quality plays a critical role in determining when free entry could be consistent with the existence of profits and result in natural oligopolies' and when it would tend to eliminate all profits.

Download or read book Product Proliferation and Pricing in a Market with Positional Effects written by George Deltas and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book If at First You Don t Succeed written by Kala Krishna and published by . This book was released on 2000 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why are higher quality niches seen as intrinsically more profitable in business circles? Why do high quality products sometimes have a low real price, while it is unusual to see low quality products with high real prices? Can markets have quality differentiation as well as quality bunching? In this paper we develop a new model of quality which explains such phenomena. Our model builds on the idea that even if a customer chooses to purchase a product, it may fail to deliver'. If a product fails to deliver, the customer may wish to choose some other product. A higher quality product has a higher probability of delivering. We model this as a three stage game where firms first choose whether to enter or not, then in the second stage choose their quality and in the last stage, their price. Our model has a number of interesting predictions. First, it suggests that in equilibrium, a wider range of price per unit of quality is to be found for high quality goods than for low quality ones. Second, it provides a theoretical reason for why high quality niches may be more profitable, supporting the common business school idea that the money is at the high end.' Third, it suggests that the nature of the fixed costs of establishing quality plays a critical role in determining when free entry could be consistent with the existence of profits and result in natural oligopolies' and when it would tend to eliminate all profits

Download or read book Intertemporal Pricing Supply Chain Design and Consumer Behavior written by Wenbo Cai and published by . This book was released on 2012 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation explores the interaction between consumer behaviors and the design, pricing and management of products and services. The dissertation is comprised of four chapters. The first chapter studies how a seller's pricing strategy can be affected by behaviors of non-fully rational consumers. These consumers are dynamically inconsistent and exhibit probabilistic decision making behaviors, which have been documented in experimental studies in economics and marketing literature. I show that consumers' dynamic inconsistency can explain why flexible pricing plans are offered by service providers. Moreover, when fully rational consumers and non-fully rational consumers co-exist, a single pricing scheme is optimal. Such a result complements existing literature in mechanism design, as classic models suggest the seller should use a menu of pricing plans to differentiate the consumers. Numerical results are provided to demonstrate that the same result hold when both types of consumers non-fully rational and under mild conditions. The second chapter examines how a seller should design the prices and qualities of products sold through his direct and indirect channels. I show that under the revenue sharing scheme, the seller's optimal design depends on consumers' sensitivities to price and quality. If the consumers are sufficiently sensitive, the seller should provide the product exclusively in the direct channel. If the consumers are sufficiently insensitive, the seller is better off providing a high quality product at a premium price in the direct channel while offering a low quality product in the indirect channel. Such quality differentiation can be eliminated in a profit sharing scheme. I also demonstrate that even when consumers are heterogeneous with privately observed sensitivities, offering a menu to induce self-selection may not be optimal for the seller's profit. In the third chapter, I use a two-period model to show that demand uncertainty can be the sole driver for the common practice of intertemporal pricing in the travel industry. Moreover, both increasing and decreasing pricing patterns can emerge as optimal strategies. I also identify the intrinsic incentive for service providers to deliberately create capacity shortage to induce early purchases. In the extended model, new arrivals are permitted in the second period enhance the competition. Contrary to intuition, the service provider's expected profit is hurt since the additional arrival exacerbates his price commitment issue and results consumers strategically delay their purchases. The last chapter investigates the effect of consumers' limited knowledge of products on their purchasing behavior. Though online retailers put intense effort in improving web functionalities over the years, some product attributes (product quality, user friendliness, fit to consumers' taste) cannot be communicated using the internet and must be examined physically by the consumers. Thus, their product valuations are not fully revealed until after they make the purchase. I show that when consumers are subject to both valuation uncertainty and future price uncertainty, their purchasing decisions are largely influenced by the return policies. A generous refund policy induces high-valued consumers to purchase early. However, it also invites some consumers to wait for the returns. This suggests that capacity rationing can be dampened. On the other hand, since neither the seller nor consumers can predict how many products will be returned, allowing consumer returns strengthens the seller's credibility in not committing to pre-announced prices. This implies that the additional source of valuation uncertainty can be desirable for the seller when dealing with forward-looking consumers. A rationale for retailers do not actively engage in recertifying or remanufacturing returned products is also provided: when returns are perceived as low-quality products, the retailers can facilitate market segmentation without creating new product lines.

Download or read book Handbook on Hedonic Indexes and Quality Adjustments in Price Indexes Special Application to Information Technology Products written by Triplett Jack and published by OECD Publishing. This book was released on 2006-09-21 with total page 258 pages. Available in PDF, EPUB and Kindle. Book excerpt: Price indexes can be constructed using a “hedonic method” that adjusts for changes in the quality of a product. This handbook sets out best practice for constructing hedonic indexes.

Download or read book Consumer Deliberation and Product Line Design written by Liang Guo and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies optimal product line design when consumers need to incur costly deliberation to uncover their valuations for quality. To induce deliberation, a firm must maintain quality dispersion and cut the price of the high-end product so that consumers are motivated to deliberate in the hope that high-end consumption fits their needs. To prevent deliberation, the firm may have to offer downgraded quality at a low price so that an impulsive purchase will not appear too wasteful. Whether the firm should induce deliberation depends on how much surplus it creates by aligning the supply of quality with heterogeneous demand for quality and how much surplus it captures during this process. Interestingly, equilibrium firm profit, consumer surplus, and social welfare can all increase with the cost of deliberation. We extend the model to accommodate consumers' heterogeneous prior beliefs of their valuations for quality. We also discuss how market research could benefit from taking into account the endogeneity of consumer deliberation.

Download or read book How to Market Smart Products written by Thomas A. Weber and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper introduces joint product design and non-linear pricing in the context of sharing markets. Product ecosystems enable user sensing, setting the stage for the control of post-purchase consumption patterns. By varying the degree to which products can be reused and transferred among peers, a company can engineer their shareability, which together with a capacity of aftermarket control, allows for flexible non-linear pricing that involves charging for the initial purchase and for subsequent collaborative transfers separately. Using a dynamic model with heterogeneous consumers and asymmetric information, we analyze a firm's economic strategy, including ecosystem design and flexible pricing, for long-term profitability. We show that an optimal product design balances durability-driven demand and price effects. Furthermore, for any given product design a profit-maximizing non-linear pricing schedule features retail price and sharing tariff in a robustly quadratic relationship, independent of the specifics of the consumer distribution. Various extensions, relating to the interaction of the firm's policy with a sharing market and the possibility of time-varying sales distributions, are also considered.

Download or read book Perspectives on Economics and Management written by Saibal Ghosh and published by Taylor & Francis. This book was released on 2024-08-28 with total page 369 pages. Available in PDF, EPUB and Kindle. Book excerpt: The world of economics and management is being reshaped in more ways than one including rapid advancements in technology and business practices. This book weaves together a diverse set of issues such as consumption patterns, wealth disparities and the management, behaviour and financial health of businesses and consumers to analyse the effectiveness of economic and business strategies. Rapid technological advancements along with the need for cost-effectiveness and convenience are making service providers embrace technology as a partner rather than a tool in their economic journey. Relatedly, traditional management philosophy is coming under a scanner, with an increasing emphasis on holistic development of the organization, rather than a top-down approach, as has been the case in the past. Understanding major developments in economic and financial policymaking has perennially been a key concern of public policy, shaped by recent global and related developments, this has necessitated a relook at these issues, couched in a cross-cutting perspective. Viewed from this standpoint, the present volume, written to honour the rich academic work of the eminent economist Professor Anindya Sen intersects this triad of economics, finance and public policy that are integral to policy thinking and its formulation. The smorgasbord of research ideas, involving both theoretical analysis and empirical evidence, presented in this volume, provides useful perspectives on the drivers that are continually reshaping the dynamism in the world around us and, in the process, integrates a multidisciplinary perspective of focusing on several pertinent policy challenges. This book will be useful to researchers and students of economics, finance and public policy, economic theorists, microeconomics, and even to those with a broader canvass such as researchers in macroeconomics, international economics, business, management and marketing.

Download or read book Quality of Mass Goods and the Problem of the Representative Consumer written by Mariano Moszoro and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most economic models assume the existence of a representative consumer with mean preferences, which is an obvious simplification. Consumers unveil their heterogeneous preferences through continual choices over goods and their characteristics. However, there is a limit to product segmentation: marketing costs and production costs related to diseconomies of scale. Moreover, mass goods must yield the same quality for the same price for a large number of consumers in a given market. Therefore, the key is to know the consumers' preferences to properly address the product mix. This article explores what quality is from the economic point of view and how difficult it is to set the appropriate quality-price bundle. One can think of voting over plausible outcomes of quality and price. However, if there are three or more consumers with different preferences over two or more variables, stable equilibrium may be impossible to achieve (impossibility theorem), since there will always be a majority in favor of change (paradox of voting). A viable solution to approach the optimum product mix can be the use of interactive methods for multi-criteria optimization.