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Consumer Behavioural Biases in Competition: A Survey

  • Steffen Huck
  • Jidong Zhou

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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File URL: http://web-docs.stern.nyu.edu/old_web/economics/docs/workingpapers/2011/Zhou-BiasesCompetitionSurvery,%20May2011.pdf
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Paper provided by New York University, Leonard N. Stern School of Business, Department of Economics in its series Working Papers with number 11-16.

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Date of creation: 2011
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Handle: RePEc:ste:nystbu:11-16
Contact details of provider: Postal:
New York University, Leonard N. Stern School of Business, Department of Economics, 44 West 4th Street, New York, NY 10012-1126

Phone: (212) 998-0860
Fax: (212) 995-4218
Web page: http://w4.stern.nyu.edu/economics/

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