Optimal firm behavior with consumer social image concerns and asymmetric information

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Standard

Optimal firm behavior with consumer social image concerns and asymmetric information. / Sebald, Alexander; Vikander, Nick.

I: Journal of Economic Behavior and Organization, Bind 167, 2019, s. 311-330.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Sebald, A & Vikander, N 2019, 'Optimal firm behavior with consumer social image concerns and asymmetric information', Journal of Economic Behavior and Organization, bind 167, s. 311-330. https://doi.org/10.1016/j.jebo.2018.12.004

APA

Sebald, A., & Vikander, N. (2019). Optimal firm behavior with consumer social image concerns and asymmetric information. Journal of Economic Behavior and Organization, 167, 311-330. https://doi.org/10.1016/j.jebo.2018.12.004

Vancouver

Sebald A, Vikander N. Optimal firm behavior with consumer social image concerns and asymmetric information. Journal of Economic Behavior and Organization. 2019;167:311-330. https://doi.org/10.1016/j.jebo.2018.12.004

Author

Sebald, Alexander ; Vikander, Nick. / Optimal firm behavior with consumer social image concerns and asymmetric information. I: Journal of Economic Behavior and Organization. 2019 ; Bind 167. s. 311-330.

Bibtex

@article{ddc8aff54d14498da58ac009dbf0fa9b,
title = "Optimal firm behavior with consumer social image concerns and asymmetric information",
abstract = "This paper explores how consumers{\textquoteright} belief-dependent social image concerns can affect firm strategic choices in a product market setting. We consider a theoretical framework with incomplete information where a profit-maximizing monopolist sets a price for its product, taking into account that consumers care about the belief that others hold about the product{\textquoteright}s popularity. Throughout our analysis, we highlight the close connection between our dynamic psychological game and the literature on network effects. We show in particular that belief-dependent social image concerns generate equilibrium price distortions that do not arise in a network effect setting, and we explore the implications for consumer demand and firm profits.",
keywords = "Consumer search, Optimal firm behavior, Social image",
author = "Alexander Sebald and Nick Vikander",
year = "2019",
doi = "10.1016/j.jebo.2018.12.004",
language = "English",
volume = "167",
pages = "311--330",
journal = "Journal of Economic Behavior & Organization",
issn = "0167-2681",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Optimal firm behavior with consumer social image concerns and asymmetric information

AU - Sebald, Alexander

AU - Vikander, Nick

PY - 2019

Y1 - 2019

N2 - This paper explores how consumers’ belief-dependent social image concerns can affect firm strategic choices in a product market setting. We consider a theoretical framework with incomplete information where a profit-maximizing monopolist sets a price for its product, taking into account that consumers care about the belief that others hold about the product’s popularity. Throughout our analysis, we highlight the close connection between our dynamic psychological game and the literature on network effects. We show in particular that belief-dependent social image concerns generate equilibrium price distortions that do not arise in a network effect setting, and we explore the implications for consumer demand and firm profits.

AB - This paper explores how consumers’ belief-dependent social image concerns can affect firm strategic choices in a product market setting. We consider a theoretical framework with incomplete information where a profit-maximizing monopolist sets a price for its product, taking into account that consumers care about the belief that others hold about the product’s popularity. Throughout our analysis, we highlight the close connection between our dynamic psychological game and the literature on network effects. We show in particular that belief-dependent social image concerns generate equilibrium price distortions that do not arise in a network effect setting, and we explore the implications for consumer demand and firm profits.

KW - Consumer search

KW - Optimal firm behavior

KW - Social image

UR - http://www.scopus.com/inward/record.url?scp=85059198353&partnerID=8YFLogxK

U2 - 10.1016/j.jebo.2018.12.004

DO - 10.1016/j.jebo.2018.12.004

M3 - Journal article

AN - SCOPUS:85059198353

VL - 167

SP - 311

EP - 330

JO - Journal of Economic Behavior & Organization

JF - Journal of Economic Behavior & Organization

SN - 0167-2681

ER -

ID: 211671887