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    Université de Fribourg

    Emergence of product differentiation from consumer heterogeneity and asymmetric information

    Lü, L. ; Medo, Matúš ; Zhang, Yi-Cheng ; Challet, Damien

    In: The European Physical Journal B, 2008, vol. 64, no. 2, p. 293-300

    We introduce a fully probabilistic framework of consumer product choice based on quality assessment. It allows us to capture many aspects of marketing such as partial information asymmetry, quality differentiation, and product placement in a supermarket.