Chasing Diamonds and Crowns: Consumer Limited Attention and Seller Response

2021 ◽  
Author(s):  
Zemin (Zachary) Zhong
Keyword(s):  
Theoretical Model ◽  
Regression Discontinuity ◽  
Limited Attention ◽  
Supply Side ◽  
Demand Side ◽  
Demand Shock ◽  
Online Platforms ◽  
Theoretical Predictions ◽  
Shaped Pattern ◽  
Sales Increase

Online platforms often assign sellers summary symbols based on whether their ratings pass certain thresholds. Consumers may focus on the symbols and pay limited attention to the ratings. This bias leads to discontinuously increased demand at the thresholds. I use a theoretical model to illustrate that sellers will lower the prices before their ratings reach the thresholds and increase their prices afterward due to the positive demand shock. I collect data from Taobao to test the theoretical predictions. Using regression discontinuity, I find that on the demand side, the hourly sales increase significantly when a seller passes the threshold, even conditional on the same item. On the supply side, the prices indeed exhibit a V-shaped pattern with respect to the ratings. Furthermore, sellers preemptively increase prices shortly before reaching thresholds, supporting the theoretical predictions. This paper was accepted by Juanjuan Zhang, marketing.

Strategic Manufacturers in Online Cash-Back Shopping

2021 ◽  
pp. 2150005
Author(s):  
Chen Chen ◽  
Yongrui Duan
Keyword(s):  
Theoretical Model ◽  
Wholesale Price ◽  
Consumer Surplus ◽  
Retail Price ◽  
Supply Side ◽  
Surprising Result ◽  
Demand Side ◽  
Product Valuation ◽  
Downstream Competition ◽  
Heterogeneous Consumers

Cash-back industry is now witnessing surging development. Prior works on cash-back sites focus mainly on the demand side, while we are also interested in the supply side. We develop a game theoretical model with a manufacturer, an online retailer, cash-back site(s), and heterogeneous consumers. We find that when the cash-back channel cannot attract new consumers, the manufacturer raises the wholesale price and the retailer raises the retail price, which may lead to the cash-back paradox where all consumers face higher prices. Therefore, when there exists a cash-back channel, the manufacturer is always worse off and the retailer is better off when low-type consumers’ product valuation is intermediate, and consumer surplus and social welfare are both lower. When the retailer affiliates with two competing cash-back sites, the manufacturer contributes to the mitigation of double marginalization problem by raising the wholesale price to a lesser extent, which drives the surprising result that when there exists downstream competition, cash-back sites enjoy higher commission rate and under some circumstances, offer lower cash-back rate and enjoy higher profit. We also show that only when the cash-back channel makes the size of the low-type segment double will the manufacturer be better off with this channel.

The contribution of supply and demand factors to the reproduction of hierarchies online: The case of crowdfunding of scientific research

2019 ◽  
Vol 28 (8) ◽  
pp. 868-882
Author(s):  
Roei Davidson ◽  
Yariv Tsfati
Keyword(s):  
Supply And Demand ◽  
Scientific Research ◽  
Supply Side ◽  
Demand Side ◽  
Institutional Level ◽  
Media Technologies ◽  
Online Platforms ◽  
To Come ◽  
Social Uses ◽  
Supply Side Factors

We conceptualize mechanisms that explain how social uses of media technologies, especially online platforms and crowds, reproduce, or modify inequalities, and explore these in the context of the crowdfunding of science. We distinguish between “supply side” factors related to the ability of actors given their institutional standing to use this funding approach, and “demand side” factors related to the crowd’s sensitivity to the institutional standing of those actors. We collected data on scientists requesting funding for their studies on Experiment.com , arguably the most popular scientific crowdfunding platform, and investigated the factors contributing to initiation and success. Supply side factors were important: crowdfunding appeals tended to come from scientists affiliated with larger, wealthier, and more active and prestigious institutions. However, demand side factors were not as important at the institutional level. Crowdfunding projects’ success was not predicted by the institution’s status, but rather by the number of appeals from an institution.

Seizing the Opportunity: Euroscepticism and Extremist Party Success in the Post-Maastricht Era

2012 ◽  
Vol 47 (4) ◽  
pp. 544-573 ◽  
Author(s):  
Renee L. Buhr
Keyword(s):  
European Union ◽  
Theoretical Model ◽  
Vote Share ◽  
Supply Side ◽  
Demand Side ◽  
Political Opportunity ◽  
Legislative Elections ◽  
Member States ◽  
Eu Member States ◽  
Eu Integration

AbstractCan extremist parties benefit from a backlash against European Union integration? A theoretical model that integrates demand-side, supply-side and political opportunity space explanations for extremist party success is used here in an effort to predict the conditions under which extremist parties may have utilized increased public discontent with EU integration to increase their vote share in national legislative elections. The plausibility of the model is then tested against the evidence in 14 EU member states from 1992 to 2006, with the use of matrices and political opportunity space maps. In the majority of the elections examined, extremist parties increased their vote share in circumstances fitting the theoretical model.

Application of a Tax to E-Commerce Deliveries in Barcelona

2021 ◽  
pp. 036119812110124
Author(s):  
Genís Majoral ◽  
Francesc Gasparín ◽  
Sergi Saurí
Keyword(s):  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Supply Side ◽  
Environmental Tax ◽  
Positive Outcomes ◽  
Demand Side ◽  
Benefit Analysis ◽  
Revenue Collection ◽  
Last Mile ◽  
The Impact

The number of e-commerce transactions is increasing worldwide. Deliveries of goods purchased online generate externalities throughout the whole supply chain and, particularly, the increasing concern about the last-mile distribution of goods. The escalating presence of vans in cities contributes to poor air quality, climate change, noise, and congestion. So far, the majority of solutions to address this issue are based on the supply side, such as electric vans, optimizing the routing and pick-up-points, and so forth. Even in other transport sectors, pricing solutions are well known, yet they have not been extended to e-commerce delivery. This paper aims to propose an environmental tax falling on the demand side and equaling the externalities from this activity. The analysis has been particularized for the case of Barcelona. A cost–benefit analysis to assess the impact of such a tax has been carried out. When revenue collection is reinvested in the logistics sector, and for subsidizing electric distribution vehicles, the results indicate that the levying of the tax can generate positive outcomes.

scholarly journals The position of the farm holiday in Austrian tourism

2019 ◽  
Vol 4 (1) ◽  
pp. 697-711 ◽  
Author(s):  
Erika Quendler
Keyword(s):  
Empirical Research ◽  
Relative Position ◽  
Secondary Data ◽  
Point Of View ◽  
Local Context ◽  
Supply Side ◽  
Data Sets ◽  
Demand Side ◽  
Tourist Destinations ◽  
Tourist Accommodation

AbstractTourism is vitally important to the Austrian economy. The number of tourist destinations, both farms and other forms of accommodation, in the different regions of Austria is considerably and constantly changing. This paper discusses the position of the ‘farm holiday’ compared to other forms of tourism. Understanding the resilience of farm holidays is especially important but empirical research on this matter remains limited. The term ‘farm holiday’ covers staying overnight on a farm that is actively engaged in agriculture and has a maximum of 10 guest beds. The results reported in this paper are based on an analysis of secondary data from 2000 and 2018 by looking at two types of indicator: (i) accommodation capacity (supply side) and (ii) attractiveness of a destination (demand side). The data sets cover Austria and its NUTS3 regions. The results show the evolution of farm holidays vis-à-vis other forms of tourist accommodation. In the form of a quadrant matrix they also show the relative position of farm holidays regionally. While putting into question the resilience of farm holidays, the data also reveals where farm holidays could act to expand this niche or learn and improve to effect a shift in their respective position relative to the market ‘leaders’. However, there is clearly a need to learn more about farm holidays within the local context. This paper contributes to our knowledge of farm holidays from a regional point of view and tries to elaborate on the need for further research.

ANALYZING THE RELATIVE INFLUENCE OF SUPPLY SIDE, DEMAND SIDE AND REGULATORY FACTORS ON THE SUCCESS OF COLLABORATIVE ENERGY INNOVATION PROJECTS

2016 ◽  
Vol 20 (02) ◽  
pp. 1650029 ◽  
Author(s):  
ALEXANDRA RESE ◽  
ANKE KUTSCHKE ◽  
DANIEL BAIER
Keyword(s):  
Structural Equation ◽  
Success Factors ◽  
Relative Influence ◽  
Equation Modeling ◽  
Supply Side ◽  
Demand Side ◽  
Firm Level ◽  
Regulatory Factors ◽  
Innovation Projects ◽  
Energy Innovation

The analysis of the importance of supply side and demand side factors with regard to innovative behavior is quite old. In this paper, these two categories are used to distinguish and examine the relevance of several success factors for collaborative innovation projects on the firm level in the German energy sector. The literature emphasizes that solving environmental problems requires extensive technological change. On the other hand, due to higher prices the market push is weaker. Regulatory factors are therefore designed to stimulate environmental innovations. The relative influence of these three categories on project performance is investigated on the basis of a sample of 128 German collaborative energy innovation projects in the development phase using a scale-based approach and structural equation modeling at the firm level. The results confirm the importance of supply side factors followed by demand side factors. In contrast to literary assumptions, R&D subsidies played no significant role.

scholarly journals Causal Relations of Upscaled Urban Aquaponics and the Food-Water-Energy Nexus—A Berlin Case Study

Water ◽  
2021 ◽  
Vol 13 (15) ◽  
pp. 2029
Author(s):  
Gösta F.M. Baganz ◽  
Manfred Schrenk ◽  
Oliver Körner ◽  
Daniela Baganz ◽  
Karel J. Keesman ◽  
...  
Keyword(s):  
Urban Areas ◽  
Causal Link ◽  
Supply Side ◽  
Demand Side ◽  
Annual Fish ◽  
Causal Relations ◽  
Water Energy Nexus ◽  
Facility Level ◽  
Predominant Effect

Aquaponics, the water-reusing production of fish and crops, is taken as an example to investigate the consequences of upscaling a nature-based solution in a circular city. We developed an upscaled-aquaponic scenario for the German metropolis of Berlin, analysed the impacts, and studied the system dynamics. To meet the annual fish, tomato, and lettuce demand of Berlin’s 3.77 million residents would require approximately 370 aquaponic facilities covering a total area of 224 hectares and the use of different combinations of fish and crops: catfish/tomato (56%), catfish/lettuce (13%), and tilapia/tomato (31%). As a predominant effect, in terms of water, aquaponic production would save about 2.0 million m3 of water compared to the baseline. On the supply-side, we identified significant causal link chains concerning the Food-Water-Energy nexus at the aquaponic facility level as well as causal relations of a production relocation to Berlin. On the demand-side, a ‘freshwater pescatarian diet’ is discussed. The new and comprehensive findings at different system levels require further investigations on this topic. Upscaled aquaponics can produce a relevant contribution to Berlin’s sustainability and to implement it, research is needed to find suitable sites for local aquaponics in Berlin, possibly inside buildings, on urban roofscape, or in peri-urban areas.

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