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Competition with Asymmetric Experience Uncertainty

机译:不对称体验不确定性的竞争

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摘要

The value of an experience good is idiosyncratic to consumers and is not fully realized until after a purchase is made. This uncertainty related to experience, or experience uncertainty, has been shown in prior research to have important implications in a competitive context. In this article, we consider two firms that are asymmetric along two dimensionsbase quality and the distribution of experience uncertainty. The interaction of these asymmetries shapes consumer demand and thus is an important driver of the equilibrium strategies of competing firms. We show that an increase in the experience uncertainty of one competitor might in fact lead to higher profits for both firms, including the firm whose product has become less certain to consumers. These unexpected results can be understood by examining how experience uncertainty drives endogenous market segmentation and price elasticity. We provide simple conditions under which more experience uncertainty can increase the profits of both competing firms.
机译:体验商品的价值对消费者而言是特质,直到购买后才能完全实现。与经验相关的不确定性或经验不确定性在先前的研究中已显示出在竞争环境中具有重要意义。在本文中,我们考虑了两个企业,它们在两个维度上都是不对称的,即基础质量和经验不确定性的分布。这些不对称的相互作用影响了消费者的需求,因此是竞争企业均衡战略的重要驱动力。我们表明,一个竞争对手的经验不确定性的增加实际上可能导致两家公司(包括其产品对消费者的不确定性降低的公司)的更高利润。通过检查经验不确定性如何驱动内生市场细分和价格弹性,可以理解这些意外结果。我们提供简单的条件,在这种条件下,更多的经验不确定性可以增加两家竞争公司的利润。

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