TITLE:
Pre-Sale Competition When Consumers Regret
AUTHORS:
Li Huang
KEYWORDS:
Anticipated Regret, Pre-Sale Competition, Retailers’ Revenue
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.8 No.3,
March
27,
2018
ABSTRACT: This paper takes consumers anticipated regret into
consideration in the pre-sale competition decision model, and analyzes the
impact of anticipated regret on retailers’ pre-sale price and revenue in the pre-sale
context where consumers have uncertain valuations and preference matching. The
results show that, for retailers with higher probability of matching, it is
expected that anticipated buying regret is harm to improve revenue, while
anticipated waiting regret is beneficial. Conversely, for the retailer with
lower possibility of matching, anticipated buying regret is beneficial to improve
revenue, while waiting regret is not.