nep-mkt New Economics Papers
on Marketing
Issue of 2016‒02‒12
eleven papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Commercial platforms with heterogeneous participants By Gabriel Garber; Márcio Issao Nakane
  2. « Can a Platform Make Profit with Consumers' Mobility? A Two-Sided Monopoly Model with Random Endogenous Side-Switching » By Pierre Andreoletti; Pierre Gazé; Maxime Menuet
  3. HOW WE CAN RESTORE THE BALANCE IN THE ROMANIAN ENERGY MARKET (International Conference "Recent Advances in Economic and Social Research", 13-14 mai 2015, București) By Alina Cristea
  4. Strategic trade in pollution permits By Alex Dickson; Ian A. MacKenzie
  5. Measuring Willingness to Pay for Environmental Attributes in Seafood By Villas-Boas, Sofia B; Hilger, James; Stevens, Andrew; Hallstein, Eric
  6. Hypothetical bias for private goods: does cheap talk make a difference? By Maurice Doyon; Laure Saulais; Bernard Ruffieux; Denise Bweli
  7. An exploratory study of Tourist-patient satisfaction and behavioral intentions in medical tourism: Post-hoc segmentation By Nahla Ben Yekhlef Boukadida; Salah Boumaiza
  8. Forty Years of Oil Price Fluctuations: Why the Price of Oil May Still Surprise Us By Baumeister, Christiane; Kilian, Lutz
  9. Consumer Search in Retail Gasoline Markets By David P. Byrne; Nicolas de Roos
  10. Market Orientation and Company Performance: A Russian Service Industry Perspective By Sergei P. Kazakov
  11. “Now that you mention it”: A Survey Experiment on Information, Salience and Online Privacy By Helia Marreiros; Mirco Tonin; Michael Vlassopoulos; M.C. Schraefel

  1. By: Gabriel Garber; Márcio Issao Nakane
    Abstract: We study two-sided markets where there are buyers and sellers, with heterogeneous participants on each side. Buyers care about the quality of the good purchased, but sellers care only about the price they get. When there is informational asymmetry about types between the sides, the role of a platform as a certifier that guarantees a minimum quality becomes central to the transactions. We analyze first-best (perfect information) and pooling equilibria without platforms and a monopolist platform that coexists with an external pooling. We also show there is no equilibrium in a simultaneous game with two platforms.
    Keywords: Platforms; two-sided markets; heterogeneous agents; certification.
    JEL: D42 D43 D82 D85 L12 L13 L15 L81
    Date: 2016–01–29
  2. By: Pierre Andreoletti (MAPMO - Mathématiques - Analyse, Probabilités, Modélisation - Orléans - UO - Université d'Orléans - CNRS - Centre National de la Recherche Scientifique); Pierre Gazé (LEO - Laboratoire d'Economie d'Orléans - CNRS - Université d'Orléans); Maxime Menuet (LEO - Laboratoire d'Economie d'Orléans - CNRS - Université d'Orléans)
    Abstract: We model a specific two-sided monopoly market in which agents can switch from a side to the other. We define two periods of time. In the first period, agents buy the platform services on each side and in the second period of time, they can possibly enhance their satisfaction by going to the other face of the platform. We analyze the link between mobility, consumer’s utility, prices and profit. We show that mobility is a valuable feature which can be compared with an increase of product quality. Finally, the firm is able to capture the mobility in its monopoly’s profit. The relative size of each group then appears as a strategical variable for the firm.
    Keywords: externalities, side-switching, two-sided markets
    Date: 2016–01–06
  3. By: Alina Cristea (PhD Candidate, Academy of Economic Studies)
    Abstract: National Power System is a complex system that includes a number of subsystems with different structures and components. With market power relations between subsystems SEN is performed on a commercial basis. Units of the system must create information systems and specific research in order to follow the dynamic environment by adopting specific strategies trends and evolution. The introduction of competition in the production and distribution of electricity requires a rethinking of business activity in the energy system units. Claims liberalized energy market participants flexible behavior imposed by the existence of competition and the need to adapt to all the changes that occur constantly. Market mechanism should introduce competitive pressure from increasingly large on companies in the sector, directly or through contracts and tariffs. In a competitive environment the producers will have to reduce their costs given that the installed capacity exceeds consumer demand. Energy suppliers are obliged to diversify their services and will be encouraged to find the most appropriate level of security in energy supply. Entering the competition implies responsiveness to consumers
    Keywords: mathematical model, balance, energy market
    JEL: C6 E2 E3 L7
    Date: 2015–12
  4. By: Alex Dickson (Department of Economics, University of Strathclyde); Ian A. MacKenzie (School of Economics, The University of Queensland)
    Abstract: Markets for pollution have become a popular regulatory instrument. Yet these markets are often highly concentrated, which may lead to strategic behavior by all participants. In this article we investigate the implications of strategic trade in pollution permits. The permit market is developed as a strategic market game, where all firms are allowed to behave strategically and their roles as buyers or sellers of permits are determined endogenously with price-mediated trade. In a second stage, firms transact on a product market and we allow for a variety of market structures. Our framework establishes the endogenous determination of equilibrium price, market structure, and levels of exchange in the permit market.
    Keywords: Pollution market, Market power, Strategic market game
    JEL: C72 D43 D51 L13 Q53
    Date: 2016–01–29
  5. By: Villas-Boas, Sofia B; Hilger, James; Stevens, Andrew; Hallstein, Eric
    Keywords: Social and Behavioral Sciences
    Date: 2016–02–08
  6. By: Maurice Doyon (Université Laval); Laure Saulais (Institut Paul Bocuse); Bernard Ruffieux (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Institut national de la recherche agronomique (INRA) - Université Grenoble Alpes - Grenoble 2, Institut National Polytechnique de Grenoble); Denise Bweli (Egg Farmers of Canada)
    Abstract: Economists and market researchers often need to accurately gauge consumers’ willingness-to-pay for private goods. The experimental literature has identified a problem of hypothetical bias when using stated preferences techniques, such as open-ended questions. It has been suggested that using a cheap talk script has the potential to resolve this bias. Yet, few empirical studies on the efficiency of cheap talk for private goods exist. This study uses a between-subjects experimental design to compare consumers’ willingness-to-pay for DHA-enriched milk using three elicitation methods: 1) Hypothetical open-ended stated preference question, without monetary consequence for the respondent; 2) Idem to the first with the addition of a cheap talk script; and 3) A Vickrey auction with real monetary consequences. In this experiment subjects have the choice to participate, or not, at each period. Our results indicate a significant hypothetical bias. While the use of cheap talk has no impact on this bias, it does however increase the level of participation to the market.
    Keywords: experimental economics,willingness to pay,cheap talk,hypothetical bias
    Date: 2015
  7. By: Nahla Ben Yekhlef Boukadida (ERMA - Entreprises et Recherche en Marketing - faculté des sciences économiques et de gestion de tunis); Salah Boumaiza (ERMA - Entreprises et Recherche en Marketing - faculté des sciences économiques et de gestion de tunis)
    Abstract: This study is an exploration of international tourist-patients’ satisfaction and their behavioral intentions toward a medical destination. The main objective here was to determine whether the perception of price fairness and the positive perception of doctor quality play a positive role in the post-purchase behavior. The proposed model was tested with a PLSPM that is adapted to non-normal data and the small sample size. The results of global model (whole sample) showed that there is heterogeneity in responses obtained. Therefore, a REBUS-PLS analysis was conducted to detect latent segments. The result sets of this research bring a new light on the post-consumption behavior of the tourist-patient. They are discussed at the end of this paper with their theoretical and managerial implications.
    Keywords: Medical tourism, post-consumption behaviors, doctor quality, price value, segmentation
    Date: 2015–05–08
  8. By: Baumeister, Christiane; Kilian, Lutz
    Abstract: It has been forty years since the oil crisis of 1973/74. This crisis has been one of the defining economic events of the 1970s and has shaped how many economists think about oil price shocks. In recent years, a large literature on the economic determinants of oil price fluctuations has emerged. Drawing on this literature, we first provide an overview of the causes of all major oil price fluctuations between 1973 and 2014. We then discuss why oil price fluctuations remain difficult to predict, despite economists’ improved understanding of oil markets. Unexpected oil price fluctuations are commonly referred to as oil price shocks. We document that, in practice, consumers, policymakers, financial market participants and economists may have different oil price expectations, and that, what may be surprising to some, need not be equally surprising to others.
    Keywords: Oil market; Oil price expectations; Oil price shock; Peak oil; Unconventional oil
    JEL: C53 Q43
    Date: 2016–01
  9. By: David P. Byrne (University of Melbourne); Nicolas de Roos (University of Sydney)
    Abstract: This paper develops novel direct tests for search behavior in retail gasoline markets. We exploit a unique market-level dataset that allows us to directly measure search intensity with daily web traffic data from a gasoline price reporting website and perfectly measure daily changes in price levels and dispersion. Our simple yet powerful tests provide strong evidence of both cross-sectional and intertemporal price search behavior.
    Keywords: search, price dispersion, retail gasoline
    JEL: D8 L8
    Date: 2015–03
  10. By: Sergei P. Kazakov (National Research University Higher School of Economics)
    Abstract: Purpose – This paper examines the influence of Market Orientation on business performance in the local service industry in Russia. Design/methodology/approach – The MKTOR and MARKOR models of Market Orientation were studied and evaluated. This led to the elaboration and proposal of a localized Market Orientation model which counts the peculiarities of doing business and the market in an emerging market. Such a model then provided the basis for a set of hypotheses tested by a field study of 133 organizations operating in the service industry. The impact of Market Orientation on business performance then was examined. Findings – The results demonstrate that Market Orientation produces a positive effect on performance. Practical implications – Companies may benefit by implementing Market Orientation. In the service industry, inter-functional coordination between different departments, competitive service product offers and a customer centred philosophy are the most crucial Market Orientation components. Others should not be overlooked as they also commonly provide a substantial basis for improved business performance. Being applied systematically, the Market Orientation paradigm may produce a positive effect on the business and its competitive position in the marketplace. Originality/value – This paper follows a stream of publications dedicated to the Market Orientation paradigm. Even with the number of publications on Market Orientation there is a lack of studies on its application to different markets, countries and industries. This paper contributes to the small number of publications dedicated to Market Orientation in one of the most multifaceted emerging markets, Russia. It is also the first that studies Market Orientation applied solely to service industry organizations in Russia
    Keywords: Market Orientation, Performance management, Service industry, Emerging markets
    JEL: Z
    Date: 2016
  11. By: Helia Marreiros (University of Southampton, Economics Department, School of Social Sciences); Mirco Tonin (Free University of Bolzano‐Bozen, Faculty of Economics and Management); Michael Vlassopoulos (University of Southampton, Economics Department, School of Social Sciences); M.C. Schraefel (University of Southampton, Electronics and Computer Sciences Department)
    Abstract: Personal data lie at the forefront of different business models and constitute the main source of revenue of several online companies. In many cases, consumers have incomplete information about the digital transactions of their data. This paper investigates whether highlighting positive or negative aspects of online privacy, thereby mitigating the informational problem, can affect consumers’ privacy actions and attitudes. Results of two online survey experiments indicate that participants adopt a more conservative stance on disclosing identifiable information, such as name and email, even when they are informed about positive attitudes of companies towards their privacy. On the other hand, they do not change their attitudes and social actions towards privacy. These findings suggest that privacy concerns are dormant and may manifest when consumers are asked to think about privacy; and that privacy behavior is not necessarily sensitive to exposure to objective threats or benefits of disclosing personal information.
    Keywords: survey experiment, information economics, privacy policies, salience, self-disclosure
    JEL: C83 L38 M38
    Date: 2016–02

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