光华讲坛——社会名流与企业家论坛第 5086 期
主题： Competition in Experience Goods Markets
Zhuoqiong Chen joined Harbin Institute of Technology, Shenzhen as an Assistant Professor of Economics in 2017. Prior to that, he obtained a PhD in Management from the London School of Economics. His main research interests lie in the fields of microeconomics theory and behavioral economics. He builds game theoretic models to analyze espionage behavior between competitors and the impact of risk attitude on competitive behavior. He has been working on experimental studies regarding the persistence of bias in advice-giving, gender difference in competition, and group identity. His works have been published in international journals such as European Economic Review.
We consider competition in duopolistic experience goods markets, where purchasing a product both informs consumers about their value for it and allows them to update their expected value for the other product based on the degree of differentiation. Consumers then choose whether to switch product in the second period. We show that each firm earns zero total profit and all surplus goes to consumers across the two periods, regardless of the degree of product differentiation. whether the market is mass or niche. And whether behavior-based price discrimination is allowed. The second period price is always higher than the first period price, and the price change is increasing in the degree of expected product differentiation when the market is mass and valuations are negatively correlated. The second period price to repeated customers may be higher than, lower than, or equal to the price to switching customers, and firms may choose not to price discriminate even when feasible.