Proceedings of the 38th Annual Hawaii International Conference on System Sciences (HICSS'05) - Track 7 Big Island, Hawaii January 03-January 06 ISBN: 0-7695-2268-8
DOI Bookmark: http://doi.ieeecomputersociety.org/10.1109/HICSS.2005.26
We characterize an optimal scheme for the sale of multiple items of a good by a monopolist in a market comprised of risk averse buyers. It is established that by randomizing prices in one channel while also offering a risk-free alternative in another a seller may obtain segmentation benefits. The optimal vehicle of such price randomization is a draw from a discrete two-points probability distribution function. We use the model to offer explanations for observed on-line sellers' behavior and discuss implementation issues in view of recent e-commerce environments.
Citation:
Ori Marom, Abraham Seidmann, "A Model of Market Segmentation with Risk," hicss, vol. 7, pp.176c, Proceedings of the 38th Annual Hawaii International Conference on System Sciences (HICSS'05) - Track 7, 2005 Usage of this product signifies your acceptance of the Terms of Use. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||