Abstract
In the paper study the peculiarities of the formation the consumer demand for durable goods, the so-called «experience goods» in markets with asymmetric information. In the known literature sources studying of the demand is based on the assumption that at the moment of the purchase of goods and services people know exactly what price they are willing to pay for them and what utility they are going to obtain using those goods and services. Consider the signal model in which the initial price and advertising expenditures are the signals of the quality influencing the formation of the demand for new goods offered by the company of unknown quality through consumer behavior. The basis of this model is the study of producers by consumers, acquisition of knowledge, information about price and quality, as well as their use in order to determine the market share of high-quality goods and low-quality goods in the asymmetry of information.
Highlights
We study the peculiarities of the formation the consumer demand for durable goods, the so-called «experience goods» in markets with asymmetric information.Under the durable goods we mean goods which have a long service life and which cannot be used immediately, like, for instance, food
The basis of this model is the study of producers by consumers, acquisition of knowledge, information about price and quality, as well as their use in order to determine the market share of high-quality goods and low-quality goods in the asymmetry of information
A direction of reducing information asymmetry is proposed to the market shares of goods of high quality and low quality based on distinguishing producers of high-quality goods and low-quality goods by consumers and by sharing of price and advertising signals of quality
Summary
We study the peculiarities of the formation the consumer demand for durable goods, the so-called «experience goods» in markets with asymmetric information. There is well known an existence of many consumer markets, the characteristics of the goods on which consumers found out only after their purchase and consumption process This is the case with electric lights, furniture, used cars, washing machines, vacuum cleaners, refrigerators, i.e. any other durable goods. There are markets in which characteristics such as «quality» of products are tested rarely, even in the process of consumption (quantity of fluoride and abrasives in toothpaste, the amount of vitamin C in the ascorbic acid, timeliness of medical intervention) This type of goods forms the class of the «search goods». If a consumer buys a video recorder, car, washing machine or any other durable goods, the situation is different In each of these cases, consumers purchase the goods that will be used for a long time and, the more they look into the future, they less can say, what would be the balance of costs and benefits of the purchasing this product
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