Welfare analysis with uncertain market segment proportions
This study theoretically explores the impact of market segmentation uncertainty on producers’ production decisions and their subsequent effects on producers’ profits, consumer surplus, and social welfare. This uncertainty creates a mismatch between the producer’s supply and consumer demand, while al...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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KeAi Communications Co., Ltd.
2024-12-01
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| Series: | Journal of Management Science and Engineering |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2096232024000337 |
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| _version_ | 1846122108795486208 |
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| author | Yijun Wang Shiting Ren Xuan Zhou Junqing Kang |
| author_facet | Yijun Wang Shiting Ren Xuan Zhou Junqing Kang |
| author_sort | Yijun Wang |
| collection | DOAJ |
| description | This study theoretically explores the impact of market segmentation uncertainty on producers’ production decisions and their subsequent effects on producers’ profits, consumer surplus, and social welfare. This uncertainty creates a mismatch between the producer’s supply and consumer demand, while also decreasing the producer’s market power. An uncertain market segment incentivizes the producer to pursue higher-quality information, which generates conflicts between the producer and consumers when the producer faces capital constraints. Conversely, when the producer has no capital constraints, the interests of both parties align and obtaining higher-quality information improves consumer welfare outcomes. |
| format | Article |
| id | doaj-art-76e591f2e1484a3c878f823a4d906e4f |
| institution | Kabale University |
| issn | 2096-2320 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | KeAi Communications Co., Ltd. |
| record_format | Article |
| series | Journal of Management Science and Engineering |
| spelling | doaj-art-76e591f2e1484a3c878f823a4d906e4f2024-12-15T06:15:02ZengKeAi Communications Co., Ltd.Journal of Management Science and Engineering2096-23202024-12-0194535552Welfare analysis with uncertain market segment proportionsYijun Wang0Shiting Ren1Xuan Zhou2Junqing Kang3College of Finance, Henan University of Economics and Law, Zhengzhou, 450016, ChinaFinance Department, Lingnan College, Sun Yat-sen University, Guangzhou, 510275, ChinaNational Academy of Economic Security, Beijing Jiaotong University, Beijing, 100044, China; Beijing Laboratory of National Economic Security Early-warning Engineering, Beijing Jiaotong University, Beijing, 100044, ChinaFinance Department, Lingnan College, Sun Yat-sen University, Guangzhou, 510275, China; Corresponding author.This study theoretically explores the impact of market segmentation uncertainty on producers’ production decisions and their subsequent effects on producers’ profits, consumer surplus, and social welfare. This uncertainty creates a mismatch between the producer’s supply and consumer demand, while also decreasing the producer’s market power. An uncertain market segment incentivizes the producer to pursue higher-quality information, which generates conflicts between the producer and consumers when the producer faces capital constraints. Conversely, when the producer has no capital constraints, the interests of both parties align and obtaining higher-quality information improves consumer welfare outcomes.http://www.sciencedirect.com/science/article/pii/S2096232024000337WelfareUncertaintyMarket segmentsCapital constraintMisallocation |
| spellingShingle | Yijun Wang Shiting Ren Xuan Zhou Junqing Kang Welfare analysis with uncertain market segment proportions Journal of Management Science and Engineering Welfare Uncertainty Market segments Capital constraint Misallocation |
| title | Welfare analysis with uncertain market segment proportions |
| title_full | Welfare analysis with uncertain market segment proportions |
| title_fullStr | Welfare analysis with uncertain market segment proportions |
| title_full_unstemmed | Welfare analysis with uncertain market segment proportions |
| title_short | Welfare analysis with uncertain market segment proportions |
| title_sort | welfare analysis with uncertain market segment proportions |
| topic | Welfare Uncertainty Market segments Capital constraint Misallocation |
| url | http://www.sciencedirect.com/science/article/pii/S2096232024000337 |
| work_keys_str_mv | AT yijunwang welfareanalysiswithuncertainmarketsegmentproportions AT shitingren welfareanalysiswithuncertainmarketsegmentproportions AT xuanzhou welfareanalysiswithuncertainmarketsegmentproportions AT junqingkang welfareanalysiswithuncertainmarketsegmentproportions |