Consumers' Evaluation of New Products: Learning from Self and Others

JOURNAL OF POLITICAL ECONOMY, Vol. 104, No. 4, August 1996

Posted: 19 May 1998

See all articles by Daniel L. McFadden

Daniel L. McFadden

University of California, Berkeley - Department of Economics; National Bureau of Economic Research (NBER)

Kenneth E. Train

affiliation not provided to SSRN

Abstract

When offered a new product whose attributes are unknown, customers can determine whether they like the product by trying it themselves or can wait to observe the experience of other customers who try the product. We specify a rational decision process and investigate the implications of learning from others on the sales of new products and the impact of advertising.

JEL Classification: M31, M37, D11, L15

Suggested Citation

McFadden, Daniel L. and Train, Kenneth E., Consumers' Evaluation of New Products: Learning from Self and Others. JOURNAL OF POLITICAL ECONOMY, Vol. 104, No. 4, August 1996. Available at SSRN: https://ssrn.com/abstract=4026

Daniel L. McFadden

University of California, Berkeley - Department of Economics ( email )

549 Evans Hall #3880
Berkeley, CA 94720-3880
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Kenneth E. Train (Contact Author)

affiliation not provided to SSRN

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