Emergence of product differentiation from consumer heterogeneity and asymmetric information

DOI10.1140/EPJB/E2008-00289-3zbMATH Open1189.91088arXiv0804.1229OpenAlexW3104584601MaRDI QIDQ978618FDOQ978618

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)

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.

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

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Mathematics Subject Classification ID

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

Cites Work

• Monopoly and product quality
• Multiproduct Duopolists
• Title not available (Why is that?)
• Happier world with more information

Cited In (5)

• The role of a matchmaker in buyer-vendor interactions
• 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 stable marriage problem: an interdisciplinary review from the physicist's perspective

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