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Chapter 2 examines whether a position in a search list (e.g. on a sales platform) can signal the quality of an experience good, if firms are allowed to pay for it. We show that it can do so, if vertical differentiation between firms is high, while it cannot, if it is low. Intuitively, if...
Persistent link: https://www.econbiz.de/10012130615
A growing literature has shown that behavioral biases influence consumer choices. Such so-called internalities are ubiquitous in many settings, including energy efficiency investments and the consumption of sin goods, such as cigarettes and sugar. In this paper, we use a mechanism design...
Persistent link: https://www.econbiz.de/10012866315
A growing literature has shown that behavioral biases influence consumer choices. Such socalled internalities are ubiquitous in many settings, including energy efficiency investments and the consumption of sin goods, such as cigarettes and sugar. In this paper, we use a mechanism design approach...
Persistent link: https://www.econbiz.de/10012031071
Persistent link: https://www.econbiz.de/10015333331