Game Theory

Peers and trend-setters have a powerful say in what products we decide to buy, particularly on online social media platforms. Naturally, this means that firms must consider the influence of network connections on purchase behaviors when designing pricing strategies. In doing so, they must consider when consumers decide to buy a new product—some consumers ... 閱讀更多

Peers and trend-setters have a powerful say in what products we decide to buy, particularly on online social media platforms. Naturally, this means that firms must consider the influence of network connections on purchase behaviors when designing pricing strategies. In doing so, they must consider when consumers decide to buy a new product—some consumers ... 閱讀更多

Social networks are a good example of the complexity of human relationships, where a person’s daily life decisions are regularly affected by the choices of their friends. This challenges extensive research on the economics of networks, in which individual activities have global impacts on the activities of others. In short, the externalities of network ... 閱讀更多

The decision to disclose product information to potential customers is something that must be considered by sellers. Common methods that are used to present quality information include advertisements, free samples, product labels, and so on. Alternatively, for various reasons, a seller might choose to reduce their investment in advertising or limit certain ... 閱讀更多

‘Freemium’, a pricing strategy whereby a firm offers a basic product or service at no cost to the user, has attracted considerable attention in recent years. Having led to the rapid rise of companies such as Skype and Dropbox, countless startups have also adopted freemium as their business model. After all, there are obvious reasons why freemium is ... 閱讀更多

Would the affected communities voluntarily obtain herd immunity if a cure for COVID-19 becomes available? The conventional wisdom says “no” because of the fact that an individual's decisions does not take into account its positive externality to others, i.e., if you get a vaccine, you are improving the chance that other will get sick. That is why people ... 閱讀更多