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arXiv · 0804.1229

Emergence of product differentiation from consumer heterogeneity and asymmetric information

Linyuan Lü·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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Linyuan Lü, Matus Medo, Yi-Cheng Zhang, Damien Challet. 2008-06-27. Emergence of product differentiation from consumer heterogeneity and asymmetric information. https://doi.org/10.1140/epjb/e2008-00289-3

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