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Consumers' Evaluation of New Products: Learning from Self and Others

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Author Info
McFadden, Daniel L
Train, Kenneth E

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Abstract

When offered a new product whose attributes are unknown, customers can determine whether they like the product by trying it themselves or can wait to observe the experience of other customers who try the product. The authors specify a rational decision process and investigate the implications of learning from others on the sales of new products and the impact of advertising. Copyright 1996 by University of Chicago Press.

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Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 104 (1996)
Issue (Month): 4 (August)
Pages: 683-703
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Handle: RePEc:ucp:jpolec:v:104:y:1996:i:4:p:683-703

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  1. Dirk Bergemann & Juuso Valimaki, 2000. "Entry and Vertical Differentiation," Cowles Foundation Discussion Papers 1277, Cowles Foundation, Yale University. [Downloadable!]
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  2. Richards, Timothy J. & Patterson, Paul M., 2000. "New Varieties And The Returns To Commodity Promotion: The Case Of Fuji Apples," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(1), April. [Downloadable!]
  3. Emanuela Randon, 2002. "L’analisi positiva dell’esternalità: rassegna della letteratura e nuovi spunti," Working Papers 58, University of Milano-Bicocca, Department of Economics, revised Jun 2002. [Downloadable!]
  4. Dirk Bergemann & Juuso Valimaki, 1996. "Experimentation in Markets," Discussion Papers 1220, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
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  5. Oriana Bandiera & Imran Rasul, 2002. "Social Networks and Technology Adoption in Northern Mozambique," STICERD - Development Economics Papers 35, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
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  6. Richards, Timothy J. & Patterson, Paul M., 1998. "New Varieties And The Returns To Commodity Promotion: Washington Fuji Apples," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20784, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  7. Richards, Timothy J. & Patterson, Paul M., 1998. "New Varieties and the Returns to Commodity Promotion: Washington Fuji Apples," Working Papers 28541, Arizona State University, Morrison School of Agribusiness and Resource Management. [Downloadable!]
  8. Philipp Kircher & Andrew Postlewaite, 2008. "Strategic Firms and Endogenous Consumer Emulation," PIER Working Paper Archive 08-003, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania. [Downloadable!]
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