The optimal choice of pre-launch reviewer

• 成果类型: Article
• 署名作者: Gill, David; Sgroi, Daniel
• 署名单位: University of Warwick; University of Oxford
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2012.01.019
• 发表日期: 2012
• 页码: 1247-1260
• 关键词: Test; Reviewer; certification; Bayesian learning; information transmission; Marketing; Product launch; BIAS; Tough test; Soft test

摘要

We develop a framework in which: (i) a firm can have a new product tested publicly before launch; and (ii) tests vary in toughness, holding expertise fixed. Price flexibility boosts the positive impact on consumer beliefs of passing a tough test and mitigates the negative impact of failing a soft test. As a result, profits are convex in toughness: the firm selects either the toughest or softest test available. The toughest test is optimal when consumers start with an unfavorable prior and receive sufficiently uninformative private signals (an innovative product); the softest test is optimal when signals are sufficiently informative. (C) 2012 Elsevier Inc. All rights reserved.