Dynamic Pricing with Consumer-Generated Information
Available Online March 2013.
- 10.2991/icibet.2013.143How to use a DOI?
We study a firm's pricing strategy in re-sponse to consumer-generated infor-mation (online word-of-mouth). The firm sells durable goods to consumers over two periods. After the first period sales, an aggregated signal about the second period demand is generated. The precision of consumer-generated information depends on the size of the user base in the first period. We show that, although a firm has no control over the content of information, it always cuts the first-period price to induce information (comparing to the case where there is no consumer-generated information). The consumer-generated information increas-es the firm's profitability.
- © 2013, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Tian Li PY - 2013/03 DA - 2013/03 TI - Dynamic Pricing with Consumer-Generated Information BT - Proceedings of the 2013 International Conference on Information, Business and Education Technology (ICIBET 2013) PB - Atlantis Press SP - 666 EP - 669 SN - 1951-6851 UR - https://doi.org/10.2991/icibet.2013.143 DO - 10.2991/icibet.2013.143 ID - Li2013/03 ER -