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Consideration Sets and Competitive Marketing

Eliaz, Kfir; Spiegler, Ran - C.E.P.R. Discussion Papers - 2009

We study a market model in which competing firms use costly marketing devices to influence the set of alternatives which consumers perceive as relevant. Consumers in our model are boundedly rational in the sense that they have an imperfect perception of what is relevant to their decision...

Persistent link: https://www.econbiz.de/10008528545

Why Do Market Shares Matter?: An Information-Based Theory

Caminal, Ramon; Vives, Xavier - C.E.P.R. Discussion Papers - 1992

We analyse the informational content of market shares and prices in a dynamic duopoly model in which consumers have heterogenous information on the quality differential (q) of two goods. It is shown that when firms are poorly informed about q, and therefore the ability of prices to reveal...

Persistent link: https://www.econbiz.de/10005124015

Loss Aversion and Consumption Choice: Theory and Experimental Evidence

Karle, Heiko; Kirchsteiger, Georg; Peitz, Martin - C.E.P.R. Discussion Papers - 2012

In this paper we analyze a consumer choice model with price uncertainty, loss aversion, and expectation-based reference points. The implications of this model are tested in an experiment in which participants have to make a consumption choice between two sandwiches. We make use of the fact that...

Persistent link: https://www.econbiz.de/10011084678

Consistency in Simple vs. Complex Choices over the Life Cycle

Brocas, Isabelle; Carrillo, Juan D; Combs, T. Dalton; … - C.E.P.R. Discussion Papers - 2015

Employing a variant of GARP, we study consistency in aging by comparing the choices of younger adults (YA) and older adults (OA) in a 'simple', two-good and a `complex' three-good condition. We find that OA perform worse than YA in the complex condition but similar in the simple condition....

Persistent link: https://www.econbiz.de/10011186610

A Theory of Fairness, Competition and Cooperation

Fehr, Ernst; Schmidt, Klaus M. - C.E.P.R. Discussion Papers - 1998

There is strong evidence that people exploit their bargaining power in competitive markets but not in bilateral bargaining situations. There is also strong evidence that people exploit free-riding opportunities in voluntary cooperation games. Yet, when they are given the opportunity to punish...

Persistent link: https://www.econbiz.de/10005504682

Cooperative Investment, Uncertainty and Access

Bourreau, Marc; Cambini, Carlo; Hoernig, Steffen - C.E.P.R. Discussion Papers - 2013

We investigate cooperative investment for the deployment of a new infrastructure, and how it interacts with access obligations and demand uncertainty. Co-investment increases total coverage only if service differentiation and/or cost savings from joint investment, in particular due to high...

Persistent link: https://www.econbiz.de/10011084539

Networks of Relations and Social Capital

Lippert, Steffen; Spagnolo, Giancarlo - C.E.P.R. Discussion Papers - 2005

We model networks of relational (or implicit) contracts, exploring how sanctioning power and equilibrium conditions … and in-network information transmission as well as conditions under which stable sub-networks inhibit more valuable larger … networks. The model provides formal definitions for individual and communities’ ‘social capital’ in the spirit of Coleman and …

Persistent link: https://www.econbiz.de/10005114333

Participation Games: Market Entry, Coordination and the Beautiful Blonde

Anderson, Simon P; Engers, Maxim - C.E.P.R. Discussion Papers - 2005

. Examples include market entry games, coordination games, and the bar-room game depicted in the movie 'A Beautiful Mind'. The …

Persistent link: https://www.econbiz.de/10005662078

Coordination and Lock-In: Competition with Switching Costs and Network Effects

Farrell, Joseph; Klemperer, Paul - C.E.P.R. Discussion Papers - 2006

although competition between incompatible networks is initially unstable and sensitive to competitive offers and random events …

Persistent link: https://www.econbiz.de/10005124423

Treasure Hunt: Social Learning in the Field

Mobius, Markus; Phan, Tuan; Szeidl, Adam - C.E.P.R. Discussion Papers - 2015

We seed noisy information to members of a real-world social network to study how information diffusion and information aggregation jointly shape social learning. Our environment features substantial social learning. We show that learning occurs via diffusion which is highly imperfect: signals...

Persistent link: https://www.econbiz.de/10011201359