Reza Nazari Khanmari
Concordia University, Canada
Dynamic Games and Applications Seminar
Influencing Customers and Product Returns
Apr 24, 2025 11:00 AM — 12:00 PM (Montreal time)
Zoom webinar link
Information tools shape consumer behavior in retail but have limited impact on post-purchase decisions. Using a Bayesian Persuasion framework, our model examines the relationship between customer influence and return decisions, considering different return and influence schemes. We uncover the trade-offs between pre-purchase and post-purchase options to identify the optimal level of influence under various return policies in both monopoly and duopoly scenarios. Our findings suggest that product returns can substitute for influence, with partial refunds reducing the need for additional efforts. The dynamics of competition and market structure also prove to have a significant role in driving these decisions.