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Consumer behavioural biases in competition: A survey

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  • Huck, Steffen
  • Zhou, Jidong

Abstract

This is a survey of studies that examine competition in the presence of behaviourally biased or boundedly rational consumers. It will tackle questions such as: How does competition and pricing change when consumers are biased? Can inefficiencies that arise from consumer behavioural biases be mitigated by lowering barriers to entry? Do biased consumers make rational ones better or worse off? And will biased consumer behaviour be overcome through learning or education?

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 31794.

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Date of creation: May 2011
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Handle: RePEc:pra:mprapa:31794

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Keywords: Behavioural Economics; Industrial Organization; Biased Consumers;

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Citations

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Cited by:
  1. Wenzel, Tobias, 2013. "Consumer myopia, competition and the incentives to unshroud add-on information," DICE Discussion Papers 126, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  2. Peter D.Lunn, 2012. "Behavioural Economics and Policy making,Learning from the Early Adopters," The Economic and Social Review, Economic and Social Studies, Economic and Social Studies, vol. 43(3), pages 423-449.
  3. Huck, Steffen & Lünser, Gabriele K. & Tyran, Jean-Robert, 2013. "Price competition and reputation in markets for experience goods: An experimental study," Discussion Papers, Research Unit: Economics of Change SP II 2013-312, Social Science Research Center Berlin (WZB).
  4. Wenzel, Tobias, 2014. "Consumer myopia, competition and the incentives to unshroud add-on information," Journal of Economic Behavior & Organization, Elsevier, vol. 98(C), pages 89-96.
  5. Alexander Morell & Andreas Glöckner & Emanuel Towfigh, 2009. "Sticky Rebates: Rollback Rebates Induce Non-Rational Loyalty in Consumers," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2009_23, Max Planck Institute for Research on Collective Goods, revised Feb 2013.

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