A model of flops.

A firm surveys a large number of consumers, some of whom sincerely report their tastes and others of whom report strategically. It makes product decisions using the sample mean of survey responses. When firms and consumers agree on the fraction of sincere consumers, information loss is severe, and m...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 44; no. 4; pp. 585 - 610
Autores principales: Hummel, Patrick, Morgan, John, Stocken, Phillip C.
Formato: Artículo
Publicado: Wiley-Blackwell Winter2013
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: A model of flops.
      aug:
        au:
          Hummel, Patrick
          Morgan, John
          Stocken, Phillip C.
        affil:
          Google Inc.
          University of California‐Berkeley
          Dartmouth College
      su:
        Consumers
        Decision making
        Corporate accounting
        Business losses
        Strategic planning
        Product failure
      sug:
        subj:
          Consumers
          Decision making
          Corporate accounting
          Business losses
          Strategic planning
          Product failure
      ab: A firm surveys a large number of consumers, some of whom sincerely report their tastes and others of whom report strategically. It makes product decisions using the sample mean of survey responses. When firms and consumers agree on the fraction of sincere consumers, information loss is severe, and many products are flops as they poorly match consumer tastes. When beliefs differ, however, equilibrium is in linear strategies, and information aggregates. Despite this, flops still arise. A firm, however, can solve the flops problem by limiting the effect of strategic consumers. Binary surveys offer one such solution.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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