Types Of Buyers Research Articles

Discriminatory Information Disclosure

A seller designs a mechanism to sell a single object to a potential buyer whose private type is his incomplete information about his valuation. The seller can disclose additional information to the buyer about his valuation without observing its realization. In both discrete-type and continuous-type settings, we show that discriminatory disclosure—releasing different amounts of additional information to different buyer types—dominates full disclosure in terms of seller revenue. An implication is that the orthogonal decomposition technique, while an important tool in dynamic mechanism design, is generally invalid when information disclosure is part of the design. (JEL D11, D82, D83)

An Empirical Look at the 'Brokered' Market for Patents

We study five years of data on patents listed and sold in the quasi-public “brokered” market. Our data covers almost 39,000 assets, an estimated 80 percent of all patents and applications offered for sale by patent brokers between 2012 and 2016. We provide statistics on the size and composition of the brokered market, including the types of buyers and sellers who participate in the market, the types of patents listed and sold on the market, and how market conditions have changed over time. We conclude with an analysis of what our data can tell us about how to accurately value technology, the costs and benefits of patent monetization, and the brokered market’s ability to measure the impact of changes to patent law.

Equilibrium price dispersion across and within stores

We develop a search-theoretic model of the product market that generates price dispersion across and within stores. Buyers differ with respect to their ability to shop around, both at different stores and at different times. The fact that some buyers can shop from only one seller while others can shop from multiple sellers causes price dispersion across stores. The fact that the buyers who can shop from multiple sellers are more likely to be able to shop at multiple times causes price dispersion within stores. Specifically, it causes sellers to post different prices for the same good at different times in order to discriminate between different types of buyers.

Efecto de la demanda en las características del ganado ovino comercializado en el Altiplano Oeste Potosino

Las regiones áridas y semiáridas comprenden poco más de un tercio de la superficie terrestre. En el caso de México, las zonas áridas y semiáridas están conformadas por cerca de 854,000 km2 de pastizales naturales que son utilizados como agostaderos para la crianza de bovinos, ovinos y caprinos, actividad que se ha constituido como un medio de ahorro y disminución de pérdidas monetarias dentro de las actividades de subsistencia de los pequeños productores en estas zonas del país. El objetivo de este estudio fue encontrar diferencias entre las características raza, peso, edad y sanidad en el ganado ovino comercializado en el Altiplano Oeste Potosino (AOP), observando cuáles de éstas inciden en lo demandado por compradores al momento de la compra-venta dentro del eslabón primario de la cadena de ovino en dicha región. La información se obtuvo mediante una encuesta aplicada a 115 ovinocultores. Se utilizó la prueba Kruskal-Wallis para determinar diferencias entre las características demandadas según el municipio y una prueba de X2 para el tipo de comprador (local/foráneo). Mediante un modelo de regresión logística binaria, se determinó la probabilidad de demanda para cada característica. Se encontró que no existen diferencias entre los municipios que conforman la región según las características demandadas. En lo respectivo a las características solicitadas por tipo de comprador, sólo hubo diferencias para la característica edad (P≤0.05), siendo la edad solicitada por un comprador local el doble a la solicitada por uno foráneo (6 meses). El modelo de regresión logística binaria indicó una mayor probabilidad de demanda para la característica raza (91.7%). La mayor preferencia se dio para la raza Dorper. La investigación reveló que la geografía de la región y el origen de los clientes no influyen sobre la demanda de las características peso, raza, sanidad y edad de los hatos ovinos. Se observó una cadena productiva poco competitiva y desintegrada. Debido a la importancia de esta cadena productiva en la región, se hace factible la implementación de estrategias que procuren la integración económica mediante el uso del conocimiento e información de la demanda de ganado ovino, pudiendo este elemento conformarse en un mecanismo de empoderamiento para ovinocultores y un soporte para innovaciones tecnológicas en los sistemas productivos locales.

STRATEGI PROMOSI PENJUALAN RITEL TRADISIONAL (Studi Pada Pedagang Sembako Pasar Karangsambung)

This study examines the sales promotion strategies undertaken by traditional retailers, in this case in the Market merchants Karangsambung groceries. Some of the strategies offered by marketing experts may be modified by traders in the Market groceries Karangsambung in promoting the products sold. This is done because of limited resources owned by the merchant.
 This research approach uses qualitative descriptive approach. The data collection technique using observation, in-depth interview techniques, and the library to study and documentation. Decision informants conducted by using informants aims. Analysis of the data using analytical models Miles and Huberman comprising the steps of data collection, data reduction, data presentation, and conclusion. The results showed that the basic needs trader in the Market Karangsambung keep doing sales promotion in the form of point of purchase, samples, loyalty programs, direct gifts, and gifts for referrals. Implementation of sales promotion conducted by the merchant groceries market Karangsambung influenced by several things such as Marketers (Knowledge and market network owned by the merchant), the availability of marketing costs, the nature of the market (broad market geographically, the market concentration, and the type of buyer), as well as the types of products traded.

Envy-Free Pricing in Large Markets

We study the classic setting of envy-free pricing, in which a single seller chooses prices for its many items, with the goal of maximizing revenue once the items are allocated. Despite the large body of work addressing such settings, most versions of this problem have resisted good approximation factors for maximizing revenue; this is true even for the classic unit-demand case. In this article, we study envy-free pricing with unit-demand buyers, but unlike previous work we focus on large markets: ones in which the demand of each buyer is infinitesimally small compared to the size of the overall market. We assume that the buyer valuations for the items they desire have a nice (although reasonable) structure, that is, that the aggregate buyer demand has a monotone hazard rate and that the values of every buyer type come from the same support. For such large markets, our main contribution is a 1.88-approximation algorithm for maximizing revenue, showing that good pricing schemes can be computed when the number of buyers is large. We also give a ( e ,2)-bicriteria algorithm that simultaneously approximates both maximum revenue and welfare, thus showing that it is possible to obtain both good revenue and welfare at the same time. We further generalize our results by relaxing some of our assumptions and quantify the necessary tradeoffs between revenue and welfare in our setting. Our results are the first known approximations for large markets and crucially rely on new lower bounds, which we prove for the revenue-maximizing prices.

Systematic response errors in self-reported category buying frequencies

PurposeDespite the growing availability of scanner-panel data, surveys remain the most common and inexpensive method of gathering marketing metrics. The purpose of this paper is to explore the size, direction and correction of response errors in retrospective reports of category buying.Design/methodology/approachSelf-reported purchase frequency data were validated using British household panel records and the negative binomial distribution (NBD) in six packaged goods categories. The log likelihood theory and the fit of the NBD model were used to test an approach to adjusting the errors post-data collection.FindingsThe authors found variations in systematic response errors according to buyer type. Specifically, lighter buyers tend to forward telescope their buying episodes. Heavier buyers tend either to over-use a rate-based estimation of once-a-month buying and over-report purchases at multiples of six or to use round numbers. These errors lead to overestimates of penetration and average purchase frequency. Adjusting the aggregate data for the NBD, however, improves the accuracy of these metrics.Practical implicationsIn light of the importance of purchase data for decision making, the authors describe the inaccuracy problem in frequency reports and offer practical suggestions regarding the correction of survey data.Originality/valueTwo novel contributions are offered here: an investigation of errors in different buyer groups and use of the NBD in survey accuracy research.

Private Information and Insurance Rejections: A Comment

We show that a necessary and sufficient condition for entry to be unprofitable in markets with adverse selection is that that no buyer type be willing to trade at a price above the expected unit cost of serving those types who are weakly more eager to trade than her. We provide two applications of this result. First, we characterize cases in which market breakdown occurs, thereby generalizing the main result of Hendren (2013). Second, we characterize entry-proof tariffs on nonexclusive active markets, thereby generalizing the main result of Glosten (1994). Our analysis paves the way to new tests of adverse selection, notably besides the case of inactive markets studied by Hendren (2013).

Search frictions, competing mechanisms and optimal market segmentation

In a market in which sellers compete for heterogeneous buyers by posting mechanisms, we analyze how the properties of the meeting technology affect the allocation of buyers to sellers. We show that a separate submarket for each type of buyer is the efficient outcome if and only if meetings are bilateral. In contrast, a single market with all agents is optimal if and only if the meeting technology satisfies a novel condition, which we call “joint concavity.” Both outcomes can be decentralized by sellers posting auctions combined with a fee that is paid by (or to) all buyers with whom the seller meets. Finally, we compare joint concavity to two other properties of meeting technologies, invariance and non-rivalry, and explain the differences.

The effects of food price changes on smallholder production and consumption decision‐making: evidence from Bangladesh

AbstractThere is still no consensus in academic debate about the impacts of food price changes on smallholder farmers' food and nutrition security. This paper aims to show how food price changes affect food and nutrition security of smallholder households in the Rajshahi district in north‐western Bangladesh. To better understand smallholders' adaptive capacity with respect to uncertainties regarding food price changes, it is crucial to look more closely at the decision‐making processes of smallholder households in their dual role as producers and consumers of food (prosumers). Smallholder farmers report in focus group discussions that they diversify their cropping practices to be more resilient against food price uncertainties. However, this strategy can be only successful if they are able to invest in inputs. Farmers face several constraints when seeking to make use of opportunities to sell diverse crops given their dependence on different types of local and regional buyers of food commodities. Furthermore, it becomes obvious that an increase in food prices does not automatically relate to an increase in farm‐gate prices.

Economic and Social Satisfaction of Buyers on Consumer-to-Consumer Platforms: The Role of Relational Capital

ABSTRACTWe empirically investigate how sellers’ website quality affects buyers’ economic and social satisfaction, which in turn influences buyers’ repurchase intentions in consumer-to-consumer (C2C) e-commerce contexts. In addition, we examine how the effects exerted by economic and social satisfaction on repurchase intentions are moderated by relational capital between buyers and sellers. Data collected from 311 buyers on the TaoBao website provide strong support for the proposed model. The results indicate that information quality exerts a stronger impact on economic satisfaction than does service quality. Service quality exerts a stronger impact on social satisfaction than does information quality. System quality has no effect on economic or social satisfaction. Economic satisfaction can contribute to buyers’ repurchase intentions, but the impact of social satisfaction on repurchase intentions is insignificant. Furthermore, relational capital positively moderates the effect of social satisfaction on repurchase intentions, whereas it has no moderating role in the relationship between economic satisfaction and repurchase intentions. Our study advances the theoretical understanding of the information systems success model in the C2C e-commerce context. The results also inform online sellers that they should more strategically improve website quality dimensions according to different types of buyers’ satisfaction and take advantage of relational capital in order to facilitate buyers’ repurchase intentions.

Adverse Selection with Heterogeneously Informed Agents

A model of over-the-counter markets is proposed. Some asset buyers are informed in that they can identify high-quality assets. Heterogeneous sellers with private information choose what type of buyers they want to trade with. When the measure of informed buyers is low, there exists a unique and stable equilibrium, and interestingly, price, trading volume and welfare typically decrease with more informed buyers. When the measure of informed buyers is intermediate, multiple equilibria arise, and price, trading volume and welfare may decrease or increase with more informed buyers depending on the equilibrium being played. A switch from one equilibrium to another can lead to large drops in liquidity, price, trading volume and welfare, like a financial crisis. The measure of informed buyers is then endogenized by allowing buyers to invest in a technology that enables them to identify high-quality assets. In this case, the model features endogenous strategic complementarity in acquiring the information technology. Multiple equilibria still exist, with different measures of informed buyers, but a scheme of tax/subsidy on information acquisition sometimes leads to the unique equilibrium.

Strong Duality for a Multiple-Good Monopolist

We characterize optimal mechanisms for the multiple-good monopoly problem and provide a framework to find them. We show that a mechanism is optimal if and only if a measure μ derived from the buyer's type distribution satisfies certain stochastic dominance conditions. This measure expresses the marginal change in the seller's revenue under marginal changes in the rent paid to subsets of buyer types. As a corollary, we characterize the optimality of grand-bundling mechanisms, strengthening several results in the literature, where only sufficient optimality conditions have been derived. As an application, we show that the optimal mechanism for n independent uniform items each supported on [c,c+1] is a grand-bundling mechanism, as long as c is sufficiently large, extending Pavlov's result for two items Pavlov, 2011. At the same time, our characterization also implies that, for all c and for all sufficiently large n, the optimal mechanism for n independent uniform items supported on [c,c+1] is not a grand-bundling mechanism.

Factors affecting the adoption of sustainable tuna fishing practices: The case of municipal fishers in Maasim, Sarangani Province, Region 12, Philippines

Tuna species, being one of the most marketable aquatic resources, have been facing severe threats towards overexploitation and depletion. Continuous increase in demand for tuna products has driven a hike in fishing pressure which led to the exhaustion of tuna stocks in the sea. With this, several measures have been made in order to uphold the sustainability of the methods employed in the extraction of tuna. Thus, this study attempts to identify the factors affecting the municipal fishers’ adoption and non-adoption of sustainable tuna fishing practices in Region 12, Philippines, the most significant tuna producing region in the country. Employing logit regression, the fishers’ household size, education, experience in fishing, the type of buyer, and effort days per fishing trip appeared to significantly affect the fishers’ adoption decision. Interestingly, both private and government initiated incentives did not appear to affect their adoption decision, although the breadth of the recipients was not vast. Moreover, the estimated rate of adoption among municipal fishers was still seen to be low, despite the fishers’ acknowledgement of the industry's potential collapse.

Dynamic contracting under permanent and transitory private information

I examine a model of long-term contracting in which the buyer is privately informed about the discrete probability distribution for his future value for a divisible product, and fully characterize the optimal long term contract that will be offered by a monopolistic seller in a simple case where two types of buyers can have two types of utility in any period. In such a case, the buyer more likely to have a high utility type will receive the first-best allocations indifferent of his value report, while the lower type will receive the first best only if he makes a high utility report. The paper also supplements the current literature on infinite dynamic games with continuous buyer types, which relies on the use of a distribution of types with full support and an envelope theorem. With discrete types, the number of compatibility constraints considered can be greatly reduced by sandwiching the border of the space of solutions allowed by constraints: formulate the maximization problem in a wider space with fewer constraints and prove that the solution obeys a simpler set of stronger constraints that places it in the allowed region.

Prioritisation of key attributes influencing the decision to purchase a residential property in Malaysia

Purpose This study aims to explicitly explore the criteria or attributes that would influence buyer decision on purchasing residential property in Malaysia. Design/methodology/approach Generally, a total of 80 respondents participated in this study, and they hail from two states in Malaysia, namely, Kuala Lumpur and Selangor. This study has structured the respondents’ demographic profiles into different categories such as gender, age, marital status, race, education, type of buyer and income level. For the purpose of analysis, this study has incorporated a versatile fuzzy approach known as the analytic hierarchy process to fulfil the objective of study. From the previous literatures, the extracted variables consist of home amenities, location, pricing, developer, financing, structural factor and community amenities. Findings The results from priority vector indicate that buyers give higher rank to the pricing (0.2330) criteria as the most influencing factor in buying residential property, followed by other criteria such as community amenities (0.1450), location (0.1430), financing (0.1420), structural factor (0.1260), home amenities (0.1060) and developer (0.1040) in Kuala Lumpur and Selangor. In addition, the consistency index of 0.00384, which is lower than 0.10 (rule of thumb), postulates that the respondents clearly understood the question requirements and there is no inconsistency involved in the result. Research limitations/implications This study attempts to discover how all those seven elements influence buyer decision on purchasing residential property. The results indicate that the outcome seems to be reliable and justifiable with the current period in the context of Malaysia housing sector. Originality/value This study is expected to provide more insights into the consistency of attributes that influence the purchase of residential property in the context of Malaysia. The points highlighted in this study are expected to benefit various parties such as potential home buyers, housing developers, marketers and government policy regulators, as well as academic institutions, to design a better policy or blueprint that can enhance the development of the housing sector in Malaysia.

Credit conditions in a boom and bust property market: Insights for macro-prudential policy

Abstract The substantial role played by greater credit provision in the international house price boom between 1995 and 2007 has lead to an increase in the use of macro-prudential measures as a means of preventing future credit bubbles. Calibration of these measures can prove difficult, however, given the relative ‘newness’ of the macro-prudential field and the limited experience with the use of these measures. Micro-loan level data can contribute to this debate by providing detail on how these measures tend to evolve across different buyer types and at different points in the business cycle. This paper uses a sample of 400,000 loans to assess the evolution of mortgage credit conditions across borrower groups in Ireland during the 2000s. The Irish case is particularly interesting given the severity of its housing boom and bust during this period. Furthermore, controlling for demand-side factors, we use the granular loan level data to provide estimates of an index of mortgage credit availability over the same period for the Irish mortgage market.

Digital Marketing Trends: The Cues that Every Indian Online Marketer Should Retrospect

The growing use of Internet in India provides a developing prospect for E-marketers. If E-marketers know the factors affecting online buyers' behavior, and the relationships between these factors and the type of online buyers, then they can further develop their marketing strategies to retain the existing online, while converting potential customers into active customers. This study focuses on factors affecting the online buyers' behavior. It also investigates how online advertisements influence consumers to buy online. Is E-shopping in India a reality or is it still an uncherished dream of the Indian consumer/seller? E-marketers need to focus more on research measures to encourage the consumers to purchase online. Accurate advertisement about product features, product warranties, avenues for customers' feedback complaints and certification of the websites can play an important role to boost the Indian consumers' confidence on E-shopping.

The Effect of Product Labeling Policies in Supply Chain under Asymmetric Information

Measuring and analyzing product labeling policies in supply chain processes is a largely unexplored topic. This paper analyzes the reasons why suppliers may pursue different product labeling policies in asymmetric information and how this affects buyers' product utility in the context of supply chain collaboration. In an asymmetric information environment, where suppliers know the quality of the goods they are selling and buyers are not able to distinguish between them, the quality buyers select to protect by a label depends on buyer's preferences for and production costs of different qualities. Suppliers with different distributions of tastes and/or different production functions will thus decide to label differently. When they collaborate, product utility effects will be different on the buyer as a whole and on different types of buyers within each buyer depending on whether buyers select to mutually recognize each other's labeling policy or to harmonize their policies. In particular, it will be the case that a buyer with weak preferences for high quality will oppose the introduction of an international, harmonized label as it is better off under a regime of mutual recognition. When suppliers only differ in their costs of producing quality instead, none of the suppliers or buyers will lose from a move towards supply chain collaboration under an international, harmonized label.

Understanding papaw and papaya consumption in Australia

Tropical fruit growers are seeking to understand the values that underlie consumers' purchasing behaviours of papaw and papaya in Australia. Accordingly, studies that identify consumer preferences for papaw and papaya are needed to aid industry success. This study took an exploratory approach to profile urban Australian papaw and papaya buyers using a sample of 819 shoppers. The purpose was to identify buyer types and sociology-demographic variables influencing purchase frequency. The results revealed three buyer types: regular, occasional and irregular. Results showed that for both papaw and papaya purchasing frequency, regular and occasional buying habits decrease with age, and irregular buying habits increase with age. Overall, sensory studies are required to evaluate buyer taste preferences. Marketing communications highlighting the health and nutritional benefits of the fruit are recommended. Future research should focus on clearly understanding the buyer proposition for fresh and cut papaw and papaya.