search query: @indexterm information technology / total: 1908
reference: 4 / 1908
| Author: | Arnold, M. (et. al) |
| Title: | Asymmetric market shares, advertising and pricing: equilibrium with an information gatekeeper |
| Journal: | Journal of Industrial Economics
2011 : MAR, VOL. 59:1, p. 63-84 |
| Index terms: | asymmetric information market share equilibrium analysis information technology decision making advertising pricing |
| Language: | eng |
| Abstract: | This study assesses how asymmetric market shares affect advertising and pricing decisions by firms with loyal, non-shopping customers and the ability to advertise to customers through a gatekeeper. In equilibrium, the firm with the smaller loyal market uses more aggressive advertising but less competitive pricing than the firm with the larger loyal market. The results differ significantly from previous literature which assumes that shoppers observe all prices and that the firm with smaller loyal market exercises a more competitive pricing strategy. The model's predictions support advertising and pricing behavior observed on price comparison websites such as Shopper.com. |
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