Department   Undergraduate School  , School of Commerce
   Position   Professor
Language English
Publication Date 2013/06
Type Academic Journal
Peer Review Peer reviewed
Title "A Pricing Strategy with Consumption Externality when the Reference Group is Large", Review of Socionetwork Strategies
Contribution Type Co-authored (other than first author)
Journal Review of Socionetwork Strategies
Journal TypeAnother Country
Publisher Springer
Volume, Issue, Page 7(1),pp.1-13
Author and coauthor Keita Kinjo and Takeshi Ebina
Details This paper provides an analysis of firms' optimal prices when individual utility exhibits both material and other consumer effects. We construct a model and conduct an analysis in the following four steps: (1) By using a conjoint analysis of data, we set up a hierarchical Bayesian model and estimate its parameters, which are composed of individual utility functions. (2) We calculate the number of sales in each time period and derive the total sales throughout the given period. (3) We estimate the demand functions in the presence and absence of consumption externalities. (4) Finally, we calculate the profit functions and derive the optimal prices taking into account various product attributes.