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In markets with search frictions, consumers can acquire information about goods either through costly search or from friends via word-of-mouth (WOM) communication. How do sellers’ market power react to a very large increase in the number of consumers’ friends with whom they engage in WOM?...
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Consumers can acquire information through their own search efforts or through their social network. Information diffusion via word-of-mouth communication leads to some consumers free-riding on their “friends” and less information acquisition via active search. Free-riding also has an...
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, such as confirmation bias or assimilation bias, and (b) people's tendency to align their actions with those of peers …
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with (a) individual biases, such as confirmation bias or assimilation bias, and (b) people's tendency to align their …
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This paper investigates opinion dynamics and social influence in directed communication networks. We study the theoretical properties of a boundedly rational model of opinion formation in which individuals aggregate the information they receive from their neighbors by using weights that are a...
Persistent link: https://www.econbiz.de/10010510796
assessment of businesses' qualities and cause attribution bias. After carefully excluding confounding variables, my results … findings and shed further light onto this example of attribution bias. This paper links to an emerging literature of … attribution bias in economics and provides empirical evidence and implications of attribution bias on online reputation systems …
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