Optimizing information in the herd: Guinea pigs, profits, and welfare (Q700131)
From MaRDI portal
scientific article
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Optimizing information in the herd: Guinea pigs, profits, and welfare |
scientific article |
Statements
Optimizing information in the herd: Guinea pigs, profits, and welfare (English)
0 references
30 September 2002
0 references
This paper evaluates the strategy of forcing a subset of agents to make their decision early from the perspective of a social planner, and a firm with a valuable or valueless product. Promotional activity by firms can be explained as an attempt to overcome the herd externality and maximize sales.
0 references
social planner
0 references
valuable or valueless product
0 references
herd externality
0 references
maximize sales
0 references
