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Emergence of product differentiation from consumer heterogeneity and asymmetric information

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Author Info
Linyuan L\"u
Matus Medo
Yi-Cheng Zhang
Damien Challet

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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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File URL: http://arxiv.org/abs/0804.1229
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File URL: http://arxiv.org/pdf/0804.1229
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Publisher Info
Paper provided by arXiv.org in its series Quantitative Finance Papers with number 0804.1229.

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Date of creation: Apr 2008
Date of revision: Jun 2008
Publication status: Published in European Physical Journal B 64, 293-300 (2008)
Handle: RePEc:arx:papers:0804.1229

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