Emergence of product differentiation from consumer heterogeneity and asymmetric information

Details Emergence of product differentiation from consumer heterogeneity and asymmetric information Emergence of product differentiation from consumer heterogeneity and asymmetric information

2008-04-08

arxiv.org/abs/0804.1229v2

European Physical Journal B 64, 293-300 (2008)

Economy

Quantitative Finance

Trading and Market Microstructure

12 pages, 12 figures

Scientific paper

10.1140/epjb/e2008-00289-3

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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