Impact of Consumer Curiosity on Content Disclosure and Pricing: The Case of Entertainment Products

Posted: 4 May 2023

See all articles by Yuetao Gao

Yuetao Gao

Xiamen University

Wei Shi Lim

National University of Singapore

Bo Shen

Wuhan University

Date Written: April 30, 2023

Abstract

Drawing on the literature on curiosity, we develop a model to study the impact of consumer curiosity on a firm's information disclosure of product content and price in an entertainment market, where consumers are curious about new products (e.g., movies) and are uncertain about their quality. We show that when consumers exhibit a weak curiosity preference, a high-quality firm's information disclosure level and price can be different from those of a low-quality firm. In contrast, when consumers exhibit a strong curiosity preference, the firm always discloses the same limited level of content information and sets identical prices regardless of the quality of its products, rendering it difficult for potential consumers to identify the quality of the products. These results suggest that consumer curiosity may account for the widespread phenomenon of the coexistence of similarly limited content disclosure and uniform pricing in entertainment markets.

Keywords: consumer curiosity, behavioral economics, limited information disclosure, uniform pricing, entertainment products

Suggested Citation

Gao, Yuetao and Lim, Wei Shi and Shen, Bo, Impact of Consumer Curiosity on Content Disclosure and Pricing: The Case of Entertainment Products (April 30, 2023). Available at SSRN: https://ssrn.com/abstract=4433564

Yuetao Gao (Contact Author)

Xiamen University ( email )

Xiamen, Fujian 361005
China

Wei Shi Lim

National University of Singapore ( email )

1 Business Link
Singapore, 117592
Singapore

Bo Shen

Wuhan University ( email )

Wuhan
China

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