SELLING A LEMON UNDER DEMAND UNCERTAINTY

• 成果类型: Article
• 署名作者: Kim, Kyungmin; Kim, Sun Hyung
• 署名单位: University of Miami; University of Iowa
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12345
• 发表日期: 2019
• 页码: 75-103
• 关键词: market; price

摘要

We consider a seller who has private information about the quality of her good but is uncertain about buyer arrivals. Assuming that the high-quality seller insists on a price, we show that the low-quality seller's surplus and pricing strategy crucially depend on buyers' knowledge about the demand state. If they are also uncertain about demand, then demand uncertainty increases the low-quality seller's expected payoff, and her optimal strategy is to lower the price after some time. If buyers know the demand state, then demand uncertainty does not affect the low-quality seller's payoff, but she must employ a sophisticated pricing strategy.