A model of flops

A-Tier
Journal: RAND Journal of Economics
Year: 2013
Volume: 44
Issue: 4
Pages: 585-609

Authors (3)

Patrick Hummel (not in RePEc) John Morgan Phillip C. Stocken (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

type="main"> <p>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.

Technical Details

RePEc Handle
repec:bla:randje:v:44:y:2013:i:4:p:585-609
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-26