From Doubt to Devotion: Trials and Learning-Based Pricing by Tan Gan

Join us for another event in the Microeconomics Research Seminar Series, Spring Term 2025.

Tan Gan, from the London School of Economics, will present this week's Microeconomics Seminar on From Doubt to Devotion: Trials and Learning-Based Pricing

Abstract

An informed seller designs a dynamic mechanism to sell an experience good. The seller has private information about the product match, which affects the buyer’s private consumption experience. The belief gap between both parties, coupled with the buyer’s learning, yields mechanisms providing the sceptical buyer with limited access to the product and an option to upgrade if the buyer is swayed by a good experience. Depending on the seller’s screening technology, this takes the form of free/discounted trials or tiered pricing, which are prevalent in digital markets. Unlike static environments, having consumer data can reduce sellers’ revenue in equilibrium.

This seminar will be held in the Economics Common Room on Monday 24 February at 2.00pm. This event is open to all levels of study and is also open to the public.

To register your place and gain access to the webinar, please contact the seminar organisers.

This event is part of the Microeconomics Research Seminar Series.