Opinion Leaders, Influence Activities and Leadership Rents∗

نویسندگان

  • Kai A. Konrad
  • Kjell Erik Lommerud
چکیده

Consumers may observe previous consumers’ choices. They may follow their choices if they think these consumers are better informed. In turn, firms may concentrate on influencing the early consumers. This, in turn, changes the nature of early consumers’ choice behavior as a signal for other consumers. In this paper I show that firms’ influence activities need not distort earlier consumers’ decisions, but may reduce the value if influence activities are noisy or if some firms have deep pockets and others are liquidity constrained.

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Leaders , Influence Activities and Leadership Rents

Consumers may observe previous consumers' choices. They may follow their choices if they think these consumers are better informed. In turn, firms may concentrate on influencing the early consumers. This, in turn, changes the nature of early consumers' choice behavior as a signal for other consumers. In this paper, I show that firms' influence activities need not distort earlier consumers' deci...

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تاریخ انتشار 2003