Dynamic Pricing with Consumer-Generated Information

DOI

10.2991/icibet.2013.143How to use a DOI?

Abstract

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.

Copyright

© 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/).

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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  -