A model of product design and information disclosure investments
Ημερομηνία
2013Συγγραφέας
Markopoulos, Panos M.Hosanagar, K.
ISBN
978-1-62993-426-6Εκδότης
Affiliation: Business and Public Administration, University of Cyprus, P.O. Box 20537, Nicosia, CY-1678, CyprusAffiliation: Wharton School, University of Pennsylvania, 3730 Walnut Street, Philadelphia, PA 19104, United States
Correspondence Address: Business and Public Administration, University of Cyprus, P.O. Box 20537, Nicosia, CY-1678, Cyprus
Source
International Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems DesignVolume
1Pages
186-203Google Scholar check
Keyword(s):
Metadata
Εμφάνιση πλήρους εγγραφήςΕπιτομή
As information availability for products and services is increasing and as consumers engage in more online search prior to purchase decisions, it is becoming more important for firms to know when to invest to reduce consumer uncertainty. We argue that today's firms should view product design and investments to reduce consumer uncertainty as an integrated process, which is in turn heavily influenced by how much information consumers can obtain independently, for example, by reading product reviews or through third party infomediaries. Using a game-theoretic model, we explain how product quality decisions influence future investments to reduce consumer uncertainty, and demonstrate how firms should take this dependency into account to avoid over-investing in quality. We also show that firms can free ride on the product information already available in the market by third-party infomediaries, and reduce their own disclosure investments. We show that this is especially true for lower quality firms. © (2013) by the AIS/ICIS Administrative Office All rights reserved.
Collections
Cite as
Related items
Showing items related by title, author, creator and subject.
-
Article
Information markets for product attributes: A game theoretic, dual pricing mechanism
Markopoulos, Panos M.; Aron, Ravi; Ungar, Lyle H. (2010)We model the availability of information about product attributes in Internet-based markets, focusing on a phenomenon that we term as information deficit (availability of less than perfect information about product attributes) ...
-
Article
Product Information Websites: Are They Good for Consumers?
Markopoulos, Panos M.; Aron, Ravi; Ungar, Lyle H. (2016)Product information websites have become ubiquitous in supporting B2C E-Commerce. This study explores their impact on firm profitability, consumer surplus, and social welfare. Using an analytical model, we show that firms ...
-
Conference Object
Is online product information availability driven by quality or differentiation?
Markopoulos, Panos M.; Aron, Ravi; Ungar, Lyle H. (Affiliation: The Wharton School, University of Pennsylvania, Philadelphia, PA, United StatesCorrespondence Address: Markopoulos, P. M.The Wharton School, University of Pennsylvania, Philadelphia, PA, United Statesemail: markopou@wharton.upenn.edu, 2005)We present a game theoretic model for the availability of product information in Internet markets, where buyers can search for multiple products in parallel. We use a multiple-circle variation of Salop's "unit circle" model ...