An Analysis of Post-Product Development Market Research and its Effects on Firms and Consumers
This paper examines a model of post-product development market research that allows firms to improve their information about demand curves. The process does not allow perfect information at finite expenditure levels. The model examines oligopolistic behavior and social welfare in the heterogeneous product world. The basic results derived are that investment of this type bears no externality to other firms in the market and a negative externality to consumers in the market from the improved information of the firm. These results are robust across several extensions which are presented in the paper. Conclusions for policy toward firms engaging in post-product market research are drawn for several different international market scenarios.
|Date of creation:||Aug 1992|
|Contact details of provider:|| Postal: Center for Mathematical Studies in Economics and Management Science, Northwestern University, 580 Jacobs Center, 2001 Sheridan Road, Evanston, IL 60208-2014|
Web page: http://www.kellogg.northwestern.edu/research/math/
More information through EDIRC
|Order Information:|| Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Vives, Xavier, 1984. "Duopoly information equilibrium: Cournot and bertrand," Journal of Economic Theory, Elsevier, vol. 34(1), pages 71-94, October.
- Li, Lode & McKelvey, Richard D. & Page, Talbot, 1987.
"Optimal research for cournot oligopolists,"
Journal of Economic Theory,
Elsevier, vol. 42(1), pages 140-166, June.
- Li, Lode & McKelvey, Richard D. & Page, Talbot., 1985. "Optimal Research for Cournot Oligopolists," Working Papers 563, California Institute of Technology, Division of the Humanities and Social Sciences.
- Gal-Or, Esther, 1985. "Information Sharing in Oligopoly," Econometrica, Econometric Society, vol. 53(2), pages 329-343, March.
- Kyle Bagwell & Robert W. Staiger, 1990. "Risky R&D in Oligopolistic Product Markets," Discussion Papers 872, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Carl Shapiro, 1986. "Exchange of Cost Information in Oligopoly," Review of Economic Studies, Oxford University Press, vol. 53(3), pages 433-446. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:nwu:cmsems:996. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fran Walker)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.