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- W1537401734 abstract "The unprecedented easiness of exchanging information among consumers on the internet could add another dimension to the firms' competition against each other. In this paper, we introduce consumers' learning from each other about the degree of product differentiation into a Hotelling duopoly model, and investigate how the consumers' learning behaviors affect the market equilibria. We show that in equilibrium it could be optimal for the two firms to charge different prices and set up a window of complaints to reduce the consumers' uncertainty on product differentiation. Communication among consumers through word of mouth can help explain the existence of price dispersion in a duopolistic market. We also discuss some implications of the public good aspect of information about product differentiation" @default.
- W1537401734 created "2016-06-24" @default.
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- W1537401734 date "2000-07-05" @default.
- W1537401734 modified "2023-09-27" @default.
- W1537401734 title "ENCOURAGE ONLINE COMPLAINTS: A DUOPOLISTIC MODEL WITH CONSUMERS' INFORMATION EXCHANGE" @default.
- W1537401734 hasPublicationYear "2000" @default.
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