Dynamic Pricing of New Experience Goods by Dirk Bergemann and Juuso Välimäki Cowles Foundation Paper No. 1175 Cowles Foundation for Research in Economics
نویسندگان
چکیده
We develop a dynamic model of experience goods pricing with independent private valuations. We show that the optimal paths of sales and prices can be described in terms of a simple dichotomy. In a mass market, prices are declining over time. In a niche market, the optimal prices are initially low followed by higher prices that extract surplus from the buyers with a high willingness to pay. We consider extensions of the model to integrate elements of social rather than private learning and turnover among buyers.
منابع مشابه
INFORMATION ACQUISITION AND EFFICIENT MECHANISM DESIGN BY DIRK BERGEMANN and JUUSO VÄLIMÄKI COWLES FOUNDATION PAPER NO. 1038 COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
1 We consider a general mechanism design setting where each agent can acquire (covert) information before participating in the mechanism. The central question is whether a mechanism exists that provides the efficient incentives for information acquisition ex-ante and implements the efficient allocation conditional on the private information ex-post. It is shown that in every private value envir...
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1 1 The authors thank the participants of the Cowles Foundation Conference ''Repeated Games with Private Monitoring'' for helpful remarks. Detailed comments by two anonymous referees and an associate editor greatly improved the note. The authors acknowledge financial support from NSF Grants 9709887 and 9709340, respectively. The second author thanks the Helsinki School of Economics for its hosp...
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