The model in Verboven (2002) is extended to include non-zero price elasticities and behavior in the fuel market is modelled explicitly. With the use of simulations it is shown, that this makes quite a difference and, therefore, might lead to bias in parameter estimates

The increased transparency of electronic channels is barely reflected in research investigating online consumer behaviour. To address this issue, we introduce two different types of price sensitivity: vendor-related and market-related price sensitivity. Price sensitivity is generally assumed to vary with product quality. While product quality is hard to discern for some product types, online co...

The nature of the online medium and the characteristics of web sites can significantly alter the degree of customer price sensitivity in online markets. Many managers fear that the Internet will increase price sensitivity and intensify price competition. There is, however, very little conceptual or empirical research on this topic. In this paper, we use the information search literature to deve...

We study the effects of oil price uncertainty (OPU) on stock informativeness based investment-price sensitivity. Using Chinese stocks from 2008 to 2021, we find a negative relationship between OPU and strength Tobin's q (a standardized measure prices) for predicting investment opportunities. This finding is likely due crowding out informed investors rather than financial constraints brought by ...

The article shows that two measures of the amount of private information in stock price—price nonsynchronicity and probability of informed trading (PIN)—have a strong positive effect on the sensitivity of corporate investment to stock price. Moreover, the effect is robust to the inclusion of controls for managerial information and for other information-related variables. The results suggest tha...