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Emergence of product differentiation from consumer heterogeneity and asymmetric information

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Abstract

We introduce a fully probabilistic framework of consumer product choice based on quality assessment. It allows us to capture many aspects of marketing such as partial information asymmetry, quality differentiation, and product placement in a supermarket.

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Authors and Affiliations

  1. Department of Systems Science, School of Management, Beijing Normal University, 100875, Beijing, P.R. China

    L. Lü

  2. Lab of Information Economy and Internet Research, University of Electronic Science and Technology of China, 610054, Chengdu, P.R. China

    L. Lü & Y. -C. Zhang

  3. Physics Department, University of Fribourg, Pérolles, 1700, Fribourg, Switzerland

    M. Medo, Y. -C. Zhang & D. Challet

  4. Institute for Scientific Interchange, via S. Severo 65, 10113, Turin, Italy

    D. Challet

Authors
  1. L. Lü
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  2. M. Medo
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  3. Y. -C. Zhang
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  4. D. Challet
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Lü, L., Medo, M., Zhang, Y.C. et al. Emergence of product differentiation from consumer heterogeneity and asymmetric information. Eur. Phys. J. B 64, 293–300 (2008). https://doi.org/10.1140/epjb/e2008-00289-3

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  • DOI: https://doi.org/10.1140/epjb/e2008-00289-3

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