Long‐term competition for product awareness with learning from friends

Qiang Gong, Yujing Xu and Huanxing Yang

RAND Journal of Economics, 2024, vol. 55, issue 2, 324-355

Abstract: We study a dynamic model of price competition with differentiated products in which new generations of consumers acquire information about available products from their friends of previous generations. The social network, which links consumers across generations, affects the evolution of consumers' awareness of products and firms' long‐term (steady‐state) market shares. Focusing on steady‐state equilibria, we examine how the structure of the social network—including connectivity and homophily—influences market shares, pricing, and welfare.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/1756-2171.12467

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:randje:v:55:y:2024:i:2:p:324-355

Ordering information: This journal article can be ordered from
http://www.blackwell ... al.asp?ref=0741-6261

Access Statistics for this article

RAND Journal of Economics is currently edited by James Hosek

More articles in RAND Journal of Economics from RAND Corporation Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().