site stats

Inattentive consumers and product quality

WebMar 10, 2024 · Product quality refers to how well a product satisfies customer needs, serves its purpose and meets industry standards. When evaluating product quality, businesses consider several key factors, including whether a product solves a problem, works efficiently or suits customers' purposes. 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 with mixed strategies, similarly to Varian (1980) in which …

(Open Access) Inattentive Consumers and Product Quality (2007)

Webthat 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. WebThis paper presents a model in which some consumers shop on the basis of price alone, without attention to product quality. A firm may “cheat ” (i.e., cut quality) to exploit these … newtopenter credit card charge https://lynxpropertymanagement.net

Inattentive Consumers and Product Quality - JSTOR

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 … WebDownloadable! This 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 with mixed strategies, similarly to Varian … 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 … miele dishwasher wash and hold

EconPapers: Inattentive Consumers and Product Quality

Category:Inattentive Consumers and Product Quality - ideas.repec.org

Tags:Inattentive consumers and product quality

Inattentive consumers and product quality

Barbara Górska on LinkedIn: Wielu sukcesów w 2024 roku! 🍾🥂🤞🏻

WebFeb 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 ... WebMar 10, 2024 · Product quality refers to how well a product satisfies customer needs, serves its purpose and meets industry standards. When evaluating product quality, …

Inattentive consumers and product quality

Did you know?

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 … WebWhen consumers have heterogeneous costs of information, firms selling low-quality products may choose to set the highest prices. Citation Matějka, Filip, and Alisdair McKay. 2012. "Simple Market Equilibria with Rationally Inattentive Consumers." American Economic Review, 102 (3): 24-29. DOI: 10.1257/aer.102.3.24

WebThis 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 ... 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 …

WebSep 17, 2024 · We find that consumers that can gather and process information at approximately no cost rationally select to be attentive while consumers that must incur a cost rationally select to be inattentive.

WebIn 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 …

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. new top for girlsWebInattentive Consumers and Product Quality∗ - Economics. EN. English Deutsch Français Español Português Italiano Român Nederlands Latina Dansk Svenska Norsk Magyar … miele dishwasher waste hoseWebThe presence of inattentive consumers harms attentive consumers, and enables firms to earn positive profits. With many sellers, approximately half of them will cheat. A market … new top flite golf ballsWebInattentive Consumers and Product Quality Mark Armstrong and Yongmin Chen Journal of the European Economic Association, 2009, vol. 7, issue 2-3, 411-422 Abstract: We present … miele dishwasher wash pump problemWebA 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 … miele dishwasher water intakeWebJul 2, 2009 · In the unique symmetric equilibrium, firms follow a mixed strategy involving both price and quality dispersion. The presence of inattentive consumers harms attentive … new top for file cabinetWebA 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 … miele dishwasher water intake light flashing