|
|
Title |
Price Signalling Differentiated Experience Goods: Are Uniform Movie Prices a Puzzle? |
|
|
Author |
In-Uck Park (University of Bristol) and Joon Song (Sungkyunkwan University) |
|
|
Keywords |
Experience Good, Movie Pricing, Price Signalling, Uniform Pricing |
|
|
|
|
Abstract |
In a simple static model of differentiated experience goods supplied by a single seller, we show that both a uniform price equilibrium and a price signalling equilibrium coexist. This is in contrast to the received wisdom that price signalling of quality is nonviable in static settings. We also show that the sellers profit is always higher in the price signalling equilibrium than in the uniform price equilibrium, but the consumer surplus and social welfare may be higher in either equilibrium depending on the distribution of the consumerstastes for the differentiated goods. |
|
|
|
|
|
|
|
|
|
28, Saemunan-ro 5ga-gil, GwanghwamunPlatinum Bldg., 5th F510 Jongno-gu, Seoul, 110-052, Korea
Phone: +82-2-3210-2522~2523 | Fax: +82-2-3210-2555 | E-mail: kea1952@kea.ne.kr
Copyright (c) 2012 KER. All rights reserved. |
|
|