Accessibility navigation


Identified consumers: an experiment on the informativeness of cross-demand price effects

Downloads

Downloads per month over past year

Garcia-Gallego, A., Georgantzis, N. and Sabater-Grande, G. (2004) Identified consumers: an experiment on the informativeness of cross-demand price effects. Cuadernos de economia, 27. pp. 185-216. ISSN 1138-5758

[img] Text - Published Version
· Restricted to Repository staff only
· The Copyright of this document has not been checked yet. This may affect its availability.

516Kb

Abstract/Summary

Often, firms have no information on the specification of the true demand model they are faced with. It is, however, a well established fact that trial-and-error algorithms may be used by them in order to learn how to make optimal decisions. Using experimental methods, we identify a property of the information on past actions which helps the seller of two asymmetric demand substitutes to reach the optimal prices more precisely and faster. The property concerns the possibility of disaggregating changes in each product’s demand into client exit/entry and shift from one product to the other.

Item Type:Article
Refereed:No
Divisions:Faculty of Life Sciences > School of Agriculture, Policy and Development > Economic and Social Sciences Division > Food Economics and Marketing (FEM)
ID Code:34819
Publisher:Elsevier

University Staff: Request a correction | Centaur Editors: Update this record

Page navigation