Emergence of product differentiation from consumer heterogeneity and asymmetric information

DOI10.1140/EPJB/E2008-00289-3MaRDI QIDQ978618zbMATH OpenOpenAlexFDO

Authors Linyuan Lu, Matúš Medo, Yi-Cheng Zhang, Damien Challet

Publication date 25 June 2010

Published in The European Physical Journal B. Condensed Matter and Complex Systems (Search for Journal in Brave)

Full work available at URL https://arxiv.org/abs/0804.1229

Mathematics Subject Classification ID

Consumer behavior, demand theory (91B42) Applications of statistical and quantum mechanics to economics (econophysics) (91B80)

Abstract: We introduce a fully probabilistic framework of consumer product choice based on quality assessment. It allows us to capture many aspects of marketing such as partial information asymmetry, quality differentiation, and product placement in a supermarket.

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Cites work

• scientific article; zbMATH DE number 3666039 (Why is no real title available?)
• Happier world with more information
• Monopoly and product quality
• Multiproduct Duopolists

Cited in

(5)

• Market failure in a new model of platform design with partially informed consumers
• Kinetic models of immediate exchange
• Firm competition in a probabilistic framework of consumer choice
• The role of a matchmaker in buyer-vendor interactions
• The stable marriage problem: an interdisciplinary review from the physicist's perspective

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