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Free samples, profits, and welfare: The effect of market structures and behavioral modes

机译:免费样品,利润和福利:市场结构和行为方式的影响

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摘要

This paper addresses an important and underresearched issue in the economics and marketing literatures: what are the managerial and social consequences when firms use business models that are based on the dissemination of free samples? We develop an analytical model of free samples for both digital and physical goods that addresses three fundamental managerial and social questions. First, what is the effect of different market structures (i.e., monopoly and oligopoly) and cost structures on optimal marketing policy and prices? Second, what is the effect of different behavioral modes on prices and free samples? Third, how do different market structures and behavioral modes affect social welfare? The main conclusion is that a number of standard results do not hold when firms have the option of selling products and of distributing free samples. For example, the optimal strategy for oligopolists who produce homogeneous goods and coordinate their marketing policies is to increase - not decrease - the quantity of sold output. Similarly, under well-defined cost and demand conditions, monopoly can lead to a socially inferior outcome to competition. From a policy viewpoint, the managerial and social welfare implications of free samples depend on the type of market structure (monopoly or oligopoly) and the behavioral modes chosen by the firms in an industry (e.g., whether to coordinate their free sample policies or to behave non-cooperatively).
机译:本文讨论了经济学和市场营销文献中一个重要且研究不足的问题:当公司使用基于免费样本传播的业务模型时,管理和社会后果是什么?我们针对数字商品和实物商品开发了免费样品的分析模型,该模型解决了三个基本的管理和社会问题。首先,不同的市场结构(即垄断和寡头垄断)和成本结构对最佳营销政策和价格的影响是什么?其次,不同的行为方式对价格和免费样品有什么影响?第三,不同的市场结构和行为方式如何影响社会福利?主要结论是,当企业可以选择销售产品和免费分发样品时,许多标准结果均不成立。例如,生产同质商品并协调其营销政策的寡头们的最佳策略是增加而不是减少已售产品的数量。同样,在成本和需求条件明确的情况下,垄断会导致竞争的社会劣势。从政策的角度来看,免费样本对管理和社会福利的影响取决于市场结构的类型(垄断或寡头垄断)和行业中企业选择的行为模式(例如,是否协调其免费样本政策或行为方式)。非合作)。

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