Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
Essays On Consumer Shopping Behavior And Price Dispersion
Download Essays On Consumer Shopping Behavior And Price Dispersion full books in PDF, epub, and Kindle. Read online Essays On Consumer Shopping Behavior And Price Dispersion ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis Essays on Consumer Shopping Behavior and Price Dispersion by : Aleksandr Yankelevich
Download or read book Essays on Consumer Shopping Behavior and Price Dispersion written by Aleksandr Yankelevich and published by . This book was released on 2011 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay 1: "Price-Matching in a Sequential Search Duopoly" While substantial research has tried to determine if price-matching guarantees are anti-competitive, most previous studies have overlooked the effect that these policies have on consumer search behavior. This essay examines how price-matching guarantees affect consumer behavior and prices in a model of sequential price search. By endogenizing consumers' acquisition of price information, I find that price-matching may raise prices in three new ways. First, price-matching diminishes firms' incentives to lower prices to attract consumers who have no cost of search. Second, for consumers with positive search costs, price-matching lowers the marginal benefit of search, inducing them to accept higher prices. Finally, higher prices may come about because price-matching can lead to asymmetric equilibria where one firm runs fewer sales and both firms tend to offer smaller discounts than in a symmetric equilibrium. These price increasing effects grow in proportion to the number of consumers who make use of price-matching guarantees as well as in the amount of asymmetry that prevails in equilibrium. Essay 2: "Asymmetric Sequential Search" (with Carmen Astorne-Figari) Rival firms often find themselves catering to a very different mix of customers from that of their competitors. This can lead to variations in pricing behavior even when other factors, such as product quality and the cost of production, are held constant across firms. In this essay, we use a model of sequential consumer price search to explore how asymmetries in the demand structures across firms impact firm pricing. In our model, a fraction of consumers must pay a cost to search for prices beyond their local firm and firms serve different fractions of local consumers. The price distribution of a firm with more local consumers first order stochastically dominates that of a firm with fewer local consumers and places positive probability on its upper bound. This means that a firm with more local consumers has a higher average price and runs sales less frequently. The frequency of sales diminishes in the number of local consumers, but price dispersion persists even if all consumers are local to a single firm. Moreover, as the fraction of consumers who search without cost increases, firms tend to offer bigger discounts, while the likelihood of a sale may fall. Essay 3: "Energizer: The Bunny or the Battery? Advertising as a Way to Publicize Either the Brand or the Good" (with Carmen Astorne-Figari) Experimental studies and surveys of consumers suggest that an important role of advertising is to convince consumers that they want the product and to buy it from the brand advertising it. However, because of competitive clutter, an advertisement that induces a consumer to enter the market may lead her to purchase from a competing brand. Thus, we can characterize two effects of advertising: (i) an effect that benefits the individual firm by promoting binding between the brand and the advertised good and (ii) a "public good" quality that benefits all producers of the good by inducing additional consumers to enter the market. We analyze these two effects to study the relationship between advertising and market size, price, firm profit and consumer welfare.
Book Synopsis Three Essays on Consumer Search Behaviour in Experimental Market Environments by : Changxia Ke
Download or read book Three Essays on Consumer Search Behaviour in Experimental Market Environments written by Changxia Ke and published by . This book was released on 2010 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis investigates consumer search behavior in different contexts and its implications on certain market outcomes. It consists of three self-contained essays. Part one investigates if people search optimally and how price promotions (such as the provision of price discounts) influence search intensity and risk-taking behavior. We start with a typical sequential search task in a finite time horizon (with exogenously determined price dispersion) as the baseline treatment. In the two experimental treatments, exogenous discounts are introduced to the search process. The treatments differ in the amount of information on the discounts revealed to the subjects. Subjects' search behavior is roughly consistent with optimality for a risk-neutral agent, but significantly influenced by the introduction of discount vouchers. We find that subjects' search intensity is significantly reduced if they are in a shop that offers discounts, even when the monetary benefit induced by the discount has been taken into account. This suggests that people seem to gain extra non-monetary utility from buying a discounted product. Alternatively, subjects might overestimate the value of a discount. Following the findings in part one, we focus on price-framing effects of discounts on consumer search behavior in part two. In order to isolate the price-framing effect from all other possible influences, we adopt an extremely simple two-shop search model in which a consumer who sees the price for an item in a shop has to decide either to buy it or to incur a search cost to learn the ex-ante uncertain price in a second shop. The experiment is designed such that a rational buyer should make identical decisions in the base treatment (where prices are posted as net prices in both shops) and in the experimental treatments (where the price in one of the shops is framed as a gross price with a discount, holding the net-price constant). Using structural estimation of the observed risk preferences, we find that people tend to be more risk-averse and hence buy from the initial shop more often in the discount treatments, regardless of where the discount is offered. The seemingly trivial change to a discount-framing increases the complexity of the decision problem. Subjects reveal a tendency to stick with the comparatively less complex options more frequently as the complexity of the decision problem increases. However, this bias declines with experience, as subjects become more and more familiar with the framing. In part three, we study search behavior in a market experiment, where prices are determined endogenously by human players. More specifically, we examine the behavioral factors and the underlying mechanism which drive the widely observed asymmetric price adjustment to cost shocks (in a world with costly search behavior and information asymmetry). We show that price dispersion, as well as asymmetric price adjustment to cost shocks, arises in experimental markets, even though the standard theory predicts neither. We find that after controlling all the potential theoretical factors, the observed price dispersion can be explained by the presence of bounded rational play. Under price dispersion, asymmetric price adjustment arises naturally, as it is harder for buyers to learn that a negative cost shock has taken place. Learning is much quicker after a positive shock.
Book Synopsis Essays on Price Dynamics and Consumer Search by : Matthew Stephen Lewis
Download or read book Essays on Price Dynamics and Consumer Search written by Matthew Stephen Lewis and published by . This book was released on 2004 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Economic and Empirical Analysis of Consumer Purchase Intentions in Electronic and Traditional Retail Channels, Internet Retailer Pricing Strategies, and Price Dispersion on the Internet by : Bo-chiuan Su
Download or read book Economic and Empirical Analysis of Consumer Purchase Intentions in Electronic and Traditional Retail Channels, Internet Retailer Pricing Strategies, and Price Dispersion on the Internet written by Bo-chiuan Su and published by . This book was released on 2002 with total page 500 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Essays on Market Response to Changes in Costs and Price Transparency by : Anna Olga Smolnik
Download or read book Essays on Market Response to Changes in Costs and Price Transparency written by Anna Olga Smolnik and published by Cuvillier Verlag. This book was released on 2017-01-25 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt: The dissertation consists of three empirical studies and takes a closer look at price fluctuations using German gasoline prices as an example for a homogenous good. It analyzes consumers’ reaction to price fluctuations and respectively the pricing behavior of firms. The first paper, which was developed with co-authorship, explores consumers’ online price search effects on the pricing behavior of firms (gasoline price level and price dispersion). As regulators have recently implemented a mechanism for reporting all price changes to a central data base, the core assumption of this price reporting scheme is that the increase in price transparency will lead to a decline in the price level and a reduction in price dispersion. The second study addresses the question whether German gas stations adjust their retail prices asymmetrically in response to crude oil price changes, i.e., whether gas stations react quicker to crude oil price increases than to crude oil price decreases. The third study aims to analyze whether consumers react more strongly to gasoline price increases or to price decreases when considering buying a new vehicle.
Book Synopsis Price Dispersion and Retailer Behavior by : Ying Zhao
Download or read book Price Dispersion and Retailer Behavior written by Ying Zhao and published by . This book was released on 2001 with total page 250 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Essays on Consumer Behavior in Retail Stores by : Edward Ku Cho
Download or read book Essays on Consumer Behavior in Retail Stores written by Edward Ku Cho and published by . This book was released on 2007 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: (Cont.) A likely explanation for this positive correlation is that customers simply care more about the prices of some products than others. Also, customers respond more to low prices on items for which they have good price knowledge, but respond more to low price claims when their price knowledge is poor, although this is a second order effect.
Book Synopsis Essays on Consumer Behavior and Analytics by : Prabhanjan Didwania
Download or read book Essays on Consumer Behavior and Analytics written by Prabhanjan Didwania and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The first chapter of my dissertation is joint work with Professor Karsten Hansen. This chapter examines gender differences in grocery retail shopping. We used consumer transaction data over the length of 12 years to find that the typical female consumer is less concentrated in choice of retail outlet, product category, brand choice and is more responsive to promotions than male shoppers. The findings are confirmed in both the "raw data" and regression analysis (including other demographic factors). The second chapter is a solo-authored paper. Chapter 2 examines consumer behavior in response to manipulations of an increasingly popular price framework, called 'drip pricing'. Our research is the first to provide insights through the manipulation (salience, magnitude, and type) of its two primary elements: the base price and surcharges. We conduct eight field experiments on a popular travel platform to document causal effects on the search and purchase process. My findings confirm the importance of the headline price as an 'anchor' in this framework; additionally, its removal led to higher quality tickets purchased but led to a reduced quantity of tickets sold. When surcharge information is shrouded, customers are not information seeking and did not seek price information and made purchases based on the most pertinent data. Consumers are more sensitive to changes in fees at lower prices and are responsive to variations in the type of surcharge. Additionally, customers are responsive to taxes rather than fee surcharges.
Book Synopsis Applied Econometric Times Series by : Walter Enders
Download or read book Applied Econometric Times Series written by Walter Enders and published by . This book was released on 1995 with total page 456 pages. Available in PDF, EPUB and Kindle. Book excerpt: This advanced text for a course on time series econometrics introduces modern time series analyses through the use of wide-ranging examples and applications. Providing a balance between macro- and microeconomic applications, the book covers recent work that has only been published in journals.
Book Synopsis Three Essays on Consumer Behavior Under Uncertainty by : Koichi Yonezawa
Download or read book Three Essays on Consumer Behavior Under Uncertainty written by Koichi Yonezawa and published by . This book was released on 2014 with total page 191 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is well understood that decisions made under uncertainty differ from those made without risk in important and significant ways. Yet, there is very little research into how uncertainty manifests itself in the most ubiquitous of decision-making environments: Consumers' day-to-day decisions over where to shop, and what to buy for their daily grocery needs. Facing a choice between stores that either offer relatively stable "everyday low prices" (EDLP) or variable prices that reflect aggressive promotion strategies (HILO), consumers have to choose stores under price-uncertainty. I find that consumers' attitudes toward risk are critically important in determining store-choice, and that heterogeneity in risk attitudes explains the co-existence of EDLP and HILO stores - an equilibrium that was previously explained in somewhat unsatisfying ways. After choosing a store, consumers face another source of risk. While knowing the quality or taste of established brands, consumers have very little information about new products. Consequently, consumers tend to choose smaller package sizes for new products, which limits their exposure to the risk that the product does not meet their prior expectations. While the observation that consumers purchase small amounts of new products is not new, I show how this practice is fully consistent with optimal purchase decision-making by utility-maximizing consumers. I then use this insight to explain how manufacturers of consumer packaged goods (CPGs) respond to higher production costs. Because consumers base their purchase decisions in part on package size, manufacturers can use package size as a competitive tool in order to raise margins in the face of higher production costs. While others have argued that manufacturers reduce package sizes as a means of raising unit-prices (prices per unit of volume) in a hidden way, I show that the more important effect is a competitive one: Changes in package size can soften price competition, so manufacturers need not rely on fooling consumers in order to pass-through cost increases through changes in package size. The broader implications of consumer behavior under risk are dramatic. First, risk perceptions affect consumers' store choice and product choice patterns in ways that can be exploited by both retailers and manufacturers. Second, strategic considerations prevent manufacturers from manipulating package size in ways that seem designed to trick consumers. Third, many services are also offered as packages, and also involve uncertainty, so the effects identified here are likely to be pervasive throughout the consumer economy.
Book Synopsis Essays in Consumer Behavior and Pricing by : Ammara Mahmood
Download or read book Essays in Consumer Behavior and Pricing written by Ammara Mahmood and published by . This book was released on 2014 with total page 450 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Essays on Consumer Search, Dynamic Competition and Regulation by : Alexei Parakhonyak
Download or read book Essays on Consumer Search, Dynamic Competition and Regulation written by Alexei Parakhonyak and published by Rozenberg Publishers. This book was released on 2010 with total page 139 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Essays in the Economics of Electronic Commerce by :
Download or read book Essays in the Economics of Electronic Commerce written by and published by Stanford University. This book was released on with total page 161 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Essays in Economics of Electronic Commerce by : Anirban Sengupta
Download or read book Essays in Economics of Electronic Commerce written by Anirban Sengupta and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The advent of the internet has revolutionized the way people buy and sell. The internet is characterized by increased access to information. This increased information should foster convergence to the "law of one price," for homogenous goods. The surge of electronic markets has motivated a stream of research focusing on comparing the efficiency of the internet market to the traditional one. This dissertation contributes to the existing literature of consumer search behavior in electronic markets and its effects on the price level and dispersion in the market more generally. A part of this dissertation assesses the direct and indirect effect of increased internet usage on the prices of airline tickets, using a unique contemporaneous online and offline transaction data for airline tickets, covering the final quarter of 2004. The study also investigates the relationship between increased internet usage and price dispersion in the market for airline tickets. This study also includes an exhaustive set of controls for airline ticket characteristics, namely refundability, advance purchase requirements, travel and stay restrictions, class of travel, departure and return day of the week and time, flight level load factor along with other market structure data used in the standard airlines literature. The existing theoretical literature in consumer search extended to the electronic markets assumes, for simplicity, that all consumers in the internet markets are the "searchers," looking for the lowest price. The internet, however, also plays the role of a convenient shopping medium for a group of consumers whose primary motivation is not to search for the lowest price. The contemporary literature incorrectly categorizes these consumers as the traditional searchers. The remaining part of this dissertation provides a modification to the existing theoretical models of consumer search to accommodate both searchers and non-searchers in each of the electronic and traditional markets and derive the implications of the increased internet usage on the average level of prices and price dispersion in a market selling a homogenous good.
Book Synopsis Price Dispersion and Informational Frictions by : Pierre Dubois
Download or read book Price Dispersion and Informational Frictions written by Pierre Dubois and published by . This book was released on 2015 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Traditional demand models assume that consumers are perfectly informed about product characteristics, including price. However, this assumption may be too strong. Unannounced sales are a common supermarket practice. As we show, retailers frequently change position in the price rankings, thus making it unlikely that consumers are aware of all deals offered in each period. Further empirical evidence on consumer behavior is also consistent with a model with price information frictions. We develop such a model for horizontally differentiated products and structurally estimate the search cost distribution. The results show that in equilibrium, consumers observe a very limited number of prices before making a purchase decision, which implies that imperfect information is indeed important and that local market power is potentially high. We also show that a full information demand model yields severely biased price elasticities.
Book Synopsis Essays on Consumer Behaviour and Pricing by : Ammara Mahmood
Download or read book Essays on Consumer Behaviour and Pricing written by Ammara Mahmood and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Essays on Price Discrimination and Price Dispersion by : Yeonjei Jung
Download or read book Essays on Price Discrimination and Price Dispersion written by Yeonjei Jung and published by . This book was released on 2014 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt:
