Behavioral Consumers in Industrial Organization
نویسندگان
چکیده
This paper succinctly overviews three primary branches of the industrial organization literature with behavioral consumers. The literature is organized according to whether consumers: (1) have non-standard preferences, (2) are overconfident or otherwise biased such that they systematically misweight different dimensions of price and other product attributes, or (3) fail to choose the best price due to suboptimal search, confusion comparing prices, or excessive inertia. The importance of consumer heterogeneity and equilibrium effects are also highlighted along with recent empirical work. ∗Boston College, [email protected], https://www2.bc.edu/michael-grubb/. I am grateful to Vera Sharunova for her excellent research assistance.
منابع مشابه
Behavioral Consumers in Industrial Organization: An Overview
This paper overviews three primary branches of the industrial organization literature with behavioral consumers. The literature is organized according to whether consumers: (1) have non-standard preferences; (2) are overconfident or otherwise biased such that they systematically misweight different dimensions of price and other product attributes; or (3) fail to choose the best price due to sub...
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My primary research interest concerns product pricing with market power. In some cases my research is motivated by observing perplexing pricing patterns and asking what about the environment, the objectives of sellers, or biases of customers can lead to such pricing? In other cases my motivation is reversed: I am intrigued by an interesting environment or regulatory intervention and ask what ar...
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