Visiting Scholar invited by research center THEMA
Stay from July 11 to August 10, 2022
Product marketing and online prominence:
We build on the model of ordered consumer search and firm pricing we have developed. The model permits a very clean and useful description of differentiated heterogeneous firms in terms of three fundamental dimensions of demand shape for each firm. These dimensions are nicheness, search appeal, and demand strength. Each of these dimensions represents different type of position externality on other firms (and consumers). We now aim to render endogenous the shape of demand function that each firm wishes to present in the market, with an associated cost to varying each dimension. This can be through fundamental product design choices or through marketing efforts that change the perception of the product to consumers.