scholarly journals Competition with Variety Seeking and Habitual Consumption: Price Commitment or Quality Commitment?

2017 ◽  
Vol 2017 ◽  
pp. 1-14
Author(s):  
Liyang Xiong ◽  
Guan Liu ◽  
Shi Jiang
Keyword(s):  
Willingness To Pay ◽  
Opposite Effect ◽  
Marginal Utility ◽  
Consumer Surplus ◽  
The Other ◽  
Type Model ◽  
Quality Competition ◽  
Variety Seeking ◽  
Period 2 ◽  
Previous Occasion

This paper investigates price and quality competition in a market where consumers seek variety and habit formation. Variety seeking is modeled as a decrease in the willingness to pay for product purchased on the previous occasion while habitual consumption may increase future marginal utility. We compare two competing strategies: price commitment and quality commitment. With a three-stage Hotelling-type model, we show that variety seeking intensifies while habitual consumption softens the competition. With price commitment, firms supply lower quality levels in period 1 and higher quality levels in period 2, while, with quality commitment, firms charge higher prices in period 1 and lower prices in period 2. However, the habitual consumption brings the opposite effect. In addition, with quality commitment variety seeking leads to a lower profit and a higher consumer surplus, while habitual consumption leads to the opposite results. On the other side, with price commitment these behaviors have no effect on the consumer surplus, although they still lower down the firm profits. Finally, we also identify conditions under which one strategy outperforms the other.

scholarly journals Competition in a Variety Seeking Market With Brand Name Awareness

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110041
Author(s):  
Liyang Xiong ◽  
Honglei Yu ◽  
Zhanqing Wang
Keyword(s):  
Price Competition ◽  
Consumer Surplus ◽  
Service Level ◽  
The Other ◽  
Type Model ◽  
Brand Name ◽  
Variety Seeking ◽  
Seeking Behavior ◽  
Second Period ◽  
Previous Occasion

This article investigates service and price competition in a variety seeking market, with the consideration of brand name awareness on consumers. Variety seeking behavior is modeled as a decrease in the willingness to pay for product purchased on the previous occasion. Under a three-stage Hotelling-type model, we show that variety seeking intensifies the competition when both firms are equally known. However, when one firm is better known than the other, it softens the competition observing the differentiation of equilibrium policies. In addition, variety seeking increases both the price and service gaps to exaggerate market differentiation. Under both scenarios firms adjust the service level in the second period so as to prevent consumers from switching, if keeping prices committed across periods. Furthermore, if consumers on average have a higher propensity to one firm, the variety seeking behavior leads to a higher total profits and a higher consumer surplus.

Can the Academic Self-Concept be Positive and Realistic?

2005 ◽  
Vol 19 (3) ◽  
pp. 129-132 ◽  
Author(s):  
Reimer Kornmann
Keyword(s):  
Academic Performance ◽  
Opposite Effect ◽  
Self Esteem ◽  
Point Of View ◽  
The Other ◽  
Self Concept ◽  
High Ability ◽  
Self Image ◽  
Other Hand

Summary: My comment is basically restricted to the situation in which less-able students find themselves and refers only to literature in German. From this point of view I am basically able to confirm Marsh's results. It must, however, be said that with less-able pupils the opposite effect can be found: Levels of self-esteem in these pupils are raised, at least temporarily, by separate instruction, academic performance however drops; combined instruction, on the other hand, leads to improved academic performance, while levels of self-esteem drop. Apparently, the positive self-image of less-able pupils who receive separate instruction does not bring about the potential enhancement of academic performance one might expect from high-ability pupils receiving separate instruction. To resolve the dilemma, it is proposed that individual progress in learning be accentuated, and that comparisons with others be dispensed with. This fosters a self-image that can in equal measure be realistic and optimistic.

scholarly journals An Examination of Consumer Willingness to Pay for Local Products

2015 ◽  
Vol 44 (3) ◽  
pp. 253-274 ◽  
Author(s):  
Aaron Adalja ◽  
James Hanson ◽  
Charles Towe ◽  
Elina Tselepidakis
Keyword(s):  
Willingness To Pay ◽  
Conjoint Analysis ◽  
Random Sample ◽  
Local Food ◽  
Food Products ◽  
The Other ◽  
Local Production

We use data from hypothetical and nonhypothetical choice-based conjoint analysis to estimate willingness to pay for local food products. The survey was administered to three groups: consumers from a buying club with experience with local and grass-fed production markets, a random sample of Maryland residents, and shoppers at a nonspecialty Maryland supermarket. We find that random-sample and supermarket shoppers are willing to pay a premium for local products but view local and grass-fed production as substitutes. Conversely, buying-club members are less willing to pay for local production than the other groups but do not conflate local and grass-fed production.

scholarly journals Impact of social distancing measures on the daily number of new COVID-19 cases in Côte d’Ivoire: a retrospective cohort study

2021 ◽  
Author(s):  
Teegwende V. Porgo ◽  
Khadidja Malloum Boukar ◽  
Ezechiel A. Djallo ◽  
Richard Quansah Amissah ◽  
Coralie Assy ◽  
...  
Keyword(s):  
Cohort Study ◽  
Incidence Rate ◽  
Cote D'ivoire ◽  
Côte D’Ivoire ◽  
The Other ◽  
Cote D’Ivoire ◽  
Social Distancing ◽  
Daily Number ◽  
Côte D'ivoire ◽  
Period 2

AbstractIntroductionCôte d’Ivoire is facing a second wave of the novel coronavirus disease 2019 (COVID-19). While social distancing measures (SDM) may be an option to address this wave, SDM may be devastating, especially if they have a minimal impact on the spread of COVID-19, given the other measures in place.MethodsWe conducted a cohort study involving cases that had occurred as at June 30, 2020. We used data from the Government’s situation reports. We established three study periods, which correspond to the implementation and easing of SDM, including a 10-day delay for test results: (1) the SDM (March 11 - May 24), (2) the no SDM (May 25 - June 21), and (3) the pseudo SDM (June 22 - July 10) periods. We compared the incidence rate during these periods using Poisson regression, with sex, age, and the average daily number of tests as covariates.ResultsAs at July 10, there were 12,052 cases. The incidence rate was 100% higher during period 2 compared to period 1 (incidence rate ratio = 2.05, 95% confidence interval: 1.75-2.41) and 25% lower during period 3 compared to period 2 (0.75 [0.66-0.86]).ConclusionsThe easing and subsequent reinforcement of SDM had a significant impact on the spread of COVID-19 in Côte d’Ivoire. The other mitigation measures either did not compensate for the easing of the SDM during the no SDM period or were not fully effective throughout the study periods; they should be strengthened before the SDM are reimplemented.

Endogenous Timing in Vertically-Related Markets

2018 ◽  
Vol 18 (2) ◽  
Author(s):  
Hong-Ren Din ◽  
Chia-Hung Sun
Keyword(s):  
Social Welfare ◽  
Price Competition ◽  
Consumer Surplus ◽  
The Other ◽  
Endogenous Timing ◽  
Price Strategy ◽  
Quantity Competition ◽  
Sequential Game ◽  
Product Substitutability

Abstract This paper investigates the theory of endogenous timing by taking into account a vertically-related market where an integrated firm competes with a downstream firm. Contrary to the standard results in the literature, we find that both firms play a sequential game in quantity competition and play a simultaneous game in price competition. Under mixed quantity-price competition, the firm choosing a price strategy moves first and the other firm choosing a quantity strategy moves later in equilibrium. Given that the timing of choosing actions is determined endogenously, aggregate profit (consumer surplus) is higher (lower) under price competition than under quantity competition. Lastly, social welfare is higher under quantity competition than under price competition when the degree of product substitutability is relatively low.

The valuation of elephant sightings in protected areas.

2021 ◽  
pp. 191-203
Author(s):  
Andrea Saayman ◽  
Melville Saayman
Keyword(s):  
South Africa ◽  
Willingness To Pay ◽  
Contingent Valuation ◽  
Protected Areas ◽  
National Parks ◽  
Big Five ◽  
The Other ◽  
Relative Importance ◽  
The Mean ◽  
Preferred Species

Abstract The research presented in this chapter determines the value that tourists on safari in protected areas in South Africa attach to elephant sightings and the relative importance of the elephant sighting compared with the other species in the Big Five. The study also determines whether tourists take the increased poaching of elephants - also in South Africa - into account when revealing their choice. Using information from five surveys conducted at different parks in South Africa from 2011 to 2013 and again in 2019, the elephant was found to be the fourth preferred species in the Big Five. The exception is Addo Elephant National Park, where the elephants are the second most preferred species. To determine the value that tourists attached to a sighting, contingent valuation was used. Although approximately a quarter to a third of respondents indicated positive amounts for a sighting across the years, the mean willingness to pay (WTP) reflects the scarcity of the species. The elephant is relatively abundant in all the parks and, in many instances, much easier to spot than the leopard or lion. It is therefore not surprising that the mean valuation of a sighting is much lower than that of the leopard and lion throughout all the years. Although tougher economic conditions in the country also influence WTP, it was found that tourists to South Africa's National Parks do not yet take the increased poaching of elephants into account when revealing their choice, nor in their valuation.

scholarly journals Elite collective agency and the state

2019 ◽  
Vol 16 (1) ◽  
pp. 13-24 ◽  
Author(s):  
Korkut Alp Ertürk
Keyword(s):  
Opposite Effect ◽  
The State ◽  
The Other ◽  
Collective Agency ◽  
Collective Interest ◽  
Other Hand ◽  
The Cost ◽  
Basic Insight

AbstractThe paper explores how elites can develop capacity for collective agency through coordination.. The challenge for elites is to simultaneously deter the state from abusing power while at the same time relying on it to discipline defectors in their midst..The basic insight holds that the credibility of the state's threats depends on the cost of carrying them out, which elites can control. The elites can coordinate by being compliant when the ruler's threats serve their collective interest, which by reducing the cost of carrying them out make them more credible. On the other hand, their coordinated non-compliance has the opposite effect...

Do Good Things Come in Small Packages? Bottle Size Effects on Willingness to Pay for Pomegranate Wine and Grape Wine

2017 ◽  
Vol 12 (1) ◽  
pp. 84-104 ◽  
Author(s):  
Andreas C. Drichoutis ◽  
Stathis Klonaris ◽  
Georgia S. Papoutsi
Keyword(s):  
Willingness To Pay ◽  
Size Effects ◽  
Marginal Utility ◽  
Signal Quality ◽  
Quality Changes ◽  
Sweet Wines ◽  
Negative Effect ◽  
Grape Wine ◽  
Diminishing Marginal Utility ◽  
Jel Classifications

AbstractWe evaluate the claim that bottle size formats signal quality changes by performing a controlled laboratory experiment in which we simultaneously auction two different sweet wines: a pomegranate wine and a grape wine. We vary the size of the bottle from 500 mL to 750 mL between participants, but we keep the amount of wine constant across the bottle sizes. We also explore the effect of expectations for the wines, blind tasting, and information about wine attributes on people's willingness to pay (WTP). For both wines, we find evidence consistent with diminishing marginal utility; for the pomegranate wine, we find a premium for the smaller bottle size, which is consistent with changes in the wine's perceived quality. We also find that information is adequate in offsetting the negative effect of the tasting treatment. (JEL Classifications: C23, C24, C91, D12, M31)

scholarly journals Sellouts, Beliefs, and Bandwagon Behavior

2018 ◽  
Vol 19 (1) ◽  
Author(s):  
Nick Vikander
Keyword(s):  
Willingness To Pay ◽  
Private Information ◽  
Aggregate Demand ◽  
Consumer Surplus ◽  
Strategic Reasoning ◽  
Dynamic Setting ◽  
Cursed Equilibrium ◽  
Limited Reasoning

AbstractThis paper examines how a firm can strategically use sellouts to influence consumers’ beliefs about its product’s popularity. A monopolist faces a market of conformist consumers, whose willingness to pay is increasing in their beliefs about aggregate demand. Consumers are broadly rational but have limited strategic reasoning about the firm’s incentives. Formally, I apply the concept of a ‘cursed equilibrium’, where consumers neglect how the firm’s chosen actions might be correlated with its private information about demand. I show that in a dynamic setting, the firm may choose its price and capacity so as to generate sellouts, specifically to exploit consumers’ limited reasoning. It does so to effectively conceal unfavorable information from consumers about past demand in a way that increases future profits. Sellouts tend to occur when demand is low, rather than high, and may be accompanied by introductory pricing. The analysis also demonstrates that the firm’s ability to mislead some consumers always benefits certain others, and can result in higher overall consumer surplus.

scholarly journals An Antimethanogenic Nutritional Intervention in Early Life of Ruminants Modifies Ruminal Colonization by Archaea

Archaea ◽  
2014 ◽  
Vol 2014 ◽  
pp. 1-12 ◽  
Author(s):  
Leticia Abecia ◽  
Kate E. Waddams ◽  
Gonzalo Martínez-Fernandez ◽  
A. Ignacio Martín-García ◽  
Eva Ramos-Morales ◽  
...  
Keyword(s):  
Community Composition ◽  
Early Life ◽  
Archaeal Community ◽  
Nutritional Intervention ◽  
The Other ◽  
Period 2 ◽  
Different Response ◽  
And Control ◽  
The Impact

The aim of this work was to study whether feeding a methanogen inhibitor from birth of goat kids and their does has an impact on the archaeal population colonizing the rumen and to what extent the impact persists later in life. Sixteen goats giving birth to two kids were used. Eight does were treated (D+) with bromochloromethane after giving birth and over 2 months. The other 8 goats were not treated (D−). One kid per doe in both groups was treated with bromochloromethane (k+) for 3 months while the other was untreated (k−), resulting in four experimental groups: D+/k+, D+/k−, D−/k+, and D−/k−. Rumen samples were collected from kids at weaning and 1 and 4 months after (3 and 6 months after birth) and from does at the end of the treating period (2 months). Pyrosequencing analyses showed a modified archaeal community composition colonizing the rumen of kids, although such effect did not persist entirely 4 months after; however, some less abundant groups remained different in treated and control animals. The different response on the archaeal community composition observed between offspring and adult goats suggests that the competition occurring in the developing rumen to occupy different niches offer potential for intervention.

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