Author(s)

Xiao Hu ¹, Zhenghua Deng ²

Affiliation(s)

¹ School of Economics and Business Administration, Chongqing University of Posts and Telecommunications, Chongqing, 400065, China
² School of Economics and Business Administration, Chongqing University of Education, Chongqing, 400000, China

Corresponding Author

Xiao Hu

ABSTRACT

This paper studies the pricing of creative products that have attracted much attention in creative transactions. We constructed a utility model for consumers under Knight uncertainty conditions to analyze the impact of creative product producers providing payment information on consumer price decisions under different levels of information awareness. The research results indicate that the release of product information by producers can change consumers' judgments about the future benefits of the product in creative transactions. With the increase of information on creative products, consumers can rationally guess the price function of products, reducing the degree of uncertainty in transactions. At this point, although the producer has charged the information cost, it may not make the producer gain higher income than if he did not provide paid information from the final result. Therefore, only when both producers and consumers can obtain partial residual income can the transaction efficiency of the creative market be improved.

KEYWORDS

Knight uncertainty, creative products, price strategy

CITE THIS PAPER

Xiao Hu, Zhenghua Deng, Research on Price Decisions of Creative Products under Knightian Uncertainty. Industrial Engineering and Innovation Management (2023) Vol. 6: 17-23. DOI: http://dx.doi.org/10.23977/ieim.2023.060904.

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