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Firms, therefore, have an incentive to promise low prices in the future, but price gouge when the future arrives.
In contrast, we find that introducing a new product can also result in a drop in price of an existing product, enabling strategic pricing by firms.
We believe that users do not change their behaviors because they do not know how long the price increases or decreases will last.
In particular, we find that market shares of Google’s Android phones and Microsoft’s Windows phones grow faster in markets with weak intellectual property rights protection because of stronger vendor support.
The results show that low price guarantee effects are likely to be attenuated when consumers perceive market price dispersion for a product to be high.
But our findings show that price dispersion among all retailers goes up with time, indicating that prices do not converge in the Internet market.
We found that the influences on their adoption of the phones were quite different to those on ongoing use and so the influences on adoption do not predict long-term use.
Five, on the whole, the market for remanufactured mobile phones is more eco-efficient than the market for new mobile phones.
Although customers perceived next-generation mobile phones as being easier to use and more useful than their current model phones, this did not directly influence them to upgrade.