Price Dynamics and Consumer Learning
Author | : Ramón Caminal |
Publisher | : |
Total Pages | : 24 |
Release | : 1997 |
Genre | : Competencia - Modelos matemáticos |
ISBN | : |
Download Price Dynamics and Consumer Learning Book in PDF, ePub and Kindle
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Price Dynamics And Consumer Learning PDF full book. Access full book title Price Dynamics And Consumer Learning.
Author | : Ramón Caminal |
Publisher | : |
Total Pages | : 24 |
Release | : 1997 |
Genre | : Competencia - Modelos matemáticos |
ISBN | : |
Author | : Yangyang Wang |
Publisher | : |
Total Pages | : 204 |
Release | : 2021 |
Genre | : Economics |
ISBN | : |
In the traditional discrete choice model, we assume that consumers know the product attributes without uncertainty. Learning models extend the discrete choice model by assuming that consumers have incomplete information about product attributes and that they can gradually resolve the uncertainty as they receive more information about the product over time. In the first chapter of this dissertation, I conduct a survey on literature of empirical learning models. I distinguish the learning models into three categories. First, demand side learning models which focuses on the effect of different types of consumer learning on demand. Second, supply side learning models which studies the firm's strategies when it does not have full information of consumer demand. Third, consumer learning and firm's marketing strategies which focuses on the interaction of consumer learning and firm's strategies. Empirical learning models have been proved to be a fruitful area of research activity and consumer learning dynamics have been intensively investigated, but there are two areas for future research --- empirical models that combines consumer learning and firm dynamics and empirical models that feature both consumer learning and firm learning.
Author | : Matthew Osborne |
Publisher | : |
Total Pages | : 68 |
Release | : 2007 |
Genre | : Brand loyalty |
ISBN | : |
Author | : Matthew Osborne |
Publisher | : BiblioGov |
Total Pages | : 74 |
Release | : 2013-06 |
Genre | : |
ISBN | : 9781289092177 |
I formulate an econometric model of consumer learning and experimentation about new products in markets for packaged goods that nests alternative sources of dynamics. The model is estimated on household level scanner data of laundry detergent purchases, and the results suggest that consumers have very similar expectations of their match value with new products before consumption experience with the good, but once consumers have learned their true match values they are very heterogeneous. I demonstrate that resolving consumer uncertainty about the new products increases market shares by 24 to 58%. The estimation results also suggest significant switching costs: removing switching costs increases new product market shares by 12 to 23%. Using counterfactual computations derived from the estimates of the structural demand model, I demonstrate that the presence of switching costs with learning changes the implications of the standard empirical learning model: the intermediate run impact of an introductory price cut on a new product's market share is significantly greater when the only source of dynamics is switching costs as opposed to when both learning and switching costs are present, which suggests that firms should combine price cuts with introductory advertising or free samples to increase their impact.
Author | : Craig Pirrong |
Publisher | : Cambridge University Press |
Total Pages | : 238 |
Release | : 2011-10-31 |
Genre | : Business & Economics |
ISBN | : 1139501976 |
Commodities have become an important component of many investors' portfolios and the focus of much political controversy over the past decade. This book utilizes structural models to provide a better understanding of how commodities' prices behave and what drives them. It exploits differences across commodities and examines a variety of predictions of the models to identify where they work and where they fail. The findings of the analysis are useful to scholars, traders and policy makers who want to better understand often puzzling - and extreme - movements in the prices of commodities from aluminium to oil to soybeans to zinc.
Author | : Thorsten Hens |
Publisher | : Elsevier |
Total Pages | : 607 |
Release | : 2009-06-12 |
Genre | : Business & Economics |
ISBN | : 0080921434 |
The models of portfolio selection and asset price dynamics in this volume seek to explain the market dynamics of asset prices. Presenting a range of analytical, empirical, and numerical techniques as well as several different modeling approaches, the authors depict the state of debate on the market selection hypothesis. By explicitly assuming the heterogeneity of investors, they present models that are descriptive and normative as well, making the volume useful for both finance theorists and financial practitioners. Explains the market dynamics of asset prices, offering insights about asset management approaches Assumes a heterogeneity of investors that yields descriptive and normative models of portfolio selections and asset pricing dynamics
Author | : Matthew Osborne |
Publisher | : |
Total Pages | : 44 |
Release | : 2014 |
Genre | : |
ISBN | : |
Author | : Tamekichi Okabe |
Publisher | : |
Total Pages | : 40 |
Release | : 1910 |
Genre | : Belief and doubt |
ISBN | : |
Author | : Matthew J. Osborne |
Publisher | : |
Total Pages | : 246 |
Release | : 2006 |
Genre | : |
ISBN | : |
Author | : Andrew T. Ching |
Publisher | : |
Total Pages | : 0 |
Release | : 2012 |
Genre | : |
ISBN | : |
This paper investigates whether aggregate consumer learning together with consumer heterogeneity in price sensitivity could explain why (i) there is a slow diffusion of generic drugs into the market, and (ii) brand-name originators keep increasing their prices over time even after the number of generic entrants has become fixed. To examine these hypotheses, I estimate a structural demand model that incorporates consumer learning and heterogeneity in price sensitivity. By conducting a counterfactual experiment, which eliminates the uncertainty of generics, I find that learning plays a role in explaining the slow diffusion. By simulating the model, I find that the branded pricing pattern could be explained by: (a) the diffusion rate of generics for price-sensitive patients is faster than that for price-insensitive patients, causing the proportion of price-insensitive patients faced by brand-name firms to slowly increase over time; (b) the brand-name price elasticities of demand (evaluated at the observed prices) are often less than one and increase over time, suggesting that brand-name firms may set their prices lower than what they would do if they were myopic, in order to slow down the learning process for generic qualities. But such an incentive may diminish over time as the uncertainty slowly resolves.