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on Marketing |
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Issue of 2013‒08‒16
three papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Hikmet Gunay |
| Abstract: | When a durable good of uncertain quality is introduced to the market, some consumers strategically delay their buying to the next period with the hope of learning the unknown quality. We analyze the monopolist's pricing and "waiting" strategies when consumers have strategic delay incentives. We show when the monopolist offers introductory low prices in pooling equilibria. We also find two types of separating equilibria: one where high type signals its quality by choosing a different price than the low type in the first period, and another where the high-type monopolist announces the product in the first period and waits to sell only in the second period. Waiting creates a credible cost for signalling; hence, the monopolist uses it as a signalling device. |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:0877&r=mkt |
| By: | Catherine Gendron-Saulnier; Marc Santugini (IEA, HEC Montréal) |
| Abstract: | We consider a monopoly supplying a homogeneous good to two separate markets with different demands. In one of the markets, some buyers do not know the quality of the good, but learn about it from observing prices. Under noisy demand, third-degree price discrimination is shown to alter the informational content of the price-signals received by the uninformed buyers. Specifically, discriminatory pricing have informational benefits over uniform pricing, i.e., the posterior beliefs of the uninformed buyers have a smaller bias and a lower variance. |
| Keywords: | Market segmentation, Monopoly, Quality of information, Signaling, Third-degree price discrimination |
| JEL: | D82 D83 L12 L15 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:iea:carech:1302&r=mkt |
| By: | Smallwood, David M.; Blisard, Noel; Blaylock, James R.; Lutz, Steven M. |
| Abstract: | Average annual food expenditures in urban households rose 59 percent from $985 per person in 1980 to $1,567 in 1992 While per person income rose 94 percent from $6,916 to $13,398. As a result, the percent of household income spent on food declined from 14.2 to 11.7 percent Annual spending per person for food consumed at home rose 55 percent from $667 to $1,036 While food consumed away from home lose 69 percent from $318 to $536. During this period, food prices rose 58.9 percent for total food, 54.8 percent for food at home, and 68.7 percent for food away from home. This bulletin presents information on trends in household food expenditures for major food groups by selected demographic factors for 1980-92. Information is also presented on household income and food price trends. The data are from the 1980-92 Consumer Expenditure Diruy Surveys prepared by the Bureau' of Labor Statistics, U.S. Department of Labor. |
| Keywords: | Food Expenditures, BLS Consumer Expenditure Diary Survey, socioeconomic characteristics, Consumer/Household Economics, Financial Economics, Research Methods/ Statistical Methods, |
| URL: | http://d.repec.org/n?u=RePEc:ags:uerssb:154828&r=mkt |