Word-of-mouth reputations in auto insurance markets |
| |
| Affiliation: | 1. School of Business, Pusan National University, Busan, Republic of Korea;2. Department of Information and Communication Engineering, DGIST, Daegu, Republic of Korea;1. Department of Electronic Engineering, Tsinghua University, Beijing, China;2. Microsoft Research Asia, China;3. Department of Telecommunications Engineering with Management, Beijing University of Posts and Telecommunications, Beijing, China |
| |
| Abstract: | A model is developed of the diffusion of information concerning stochastic quality levels of firms under assumptions of highly imperfect consumer knowledge. An equilibrium analysis finds that an increase in the rate of diffusion of information results in a decline in the elasticity of demand with respect to quality. A dynamic analysis indicates, however, that under certain conditions short-term elasticity increases with an increased rate of diffusion of information. The importance of dynamic analysis is underscored by the length of time often required for convergence to the steady state. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
