Similar Search Results

House, Christopher L. - 2006

Is the variety of products supplied in markets a reflection of the diversity of consumers' preferences? In this paper, we argue that the distribution of durable goods offered in markets tends to be compressed relative to the distribution of consumers' underlying preferences. In particular, there...

Persistent link: https://www.econbiz.de/10012466641

Households' Response to the Wealth Effects of Inflation

Schnorpfeil, Philip; Weber, Michael; Hackethal, Andreas - National Bureau of Economic Research - 2023

We study the redistributive effects of inflation combining administrative bank data with an information provision experiment during an episode of historic inflation. On average, households are well-informed about prevailing inflation and are concerned about its impact on their wealth; yet, while...

Persistent link: https://www.econbiz.de/10014372429

Good Rankings Are Bad : Why Reliable Rankings Can Hurt Consumers

Bouton, Laurent - 2015

Rankings have become increasingly popular on various markets, e.g. the market for study programs. We analyze their welfare implications. Consumers have to choose between two goods of unknown quality with exogenous presence or absence of an unbiased informative ranking. The existence of the...

Persistent link: https://www.econbiz.de/10012457583

The New Science of Pleasure

McFadden, Daniel L. - 2013

Economists since the days of Adam Smith and Jeremy Bentham have traditionally viewed consumers as driven by relentless and consistent pursuit of self-interest, with their choices in the marketplace providing all the measurements needed to reveal their preferences and assess their well-being....

Persistent link: https://www.econbiz.de/10012459978

Salience and Consumer Choice

Bordalo, Pedro - 2012

We present a theory of context-dependent choice in which a consumer's attention is drawn to salient attributes of goods, such as quality or price. An attribute is salient for a good when it stands out among the good's characteristics, in the precise sense of being furthest away in that good from...

Persistent link: https://www.econbiz.de/10012460712

The Evolution of Brand Preferences : Evidence from Consumer Migration

Bronnenberg, Bart J. - 2010

We study the long-run evolution of brand preferences, using new data on consumers' life histories and purchases of … advertising. Heterogeneity in brand preferences explains 40 percent of geographic variation in market shares. These preferences … years in the past still exerting a significant effect on current consumption. Counterfactuals suggest that brand preferences …

Persistent link: https://www.econbiz.de/10012462389

Adaptive Consumption Behavior

Howitt, Peter - 2009

This paper proposes and studies a theory of adaptive consumption behavior under income uncertainty and liquidity constraints. We assume that consumption is governed by a linear function of wealth, whose coefficients are revised each period by a procedure, which, although sophisticated, places...

Persistent link: https://www.econbiz.de/10012463222

Nonparametric Identification of Multinomial Choice Demand Models with Heterogeneous Consumers

Berry, Steven T. - 2009

We consider identification of nonparametric random utility models of multinomial choice using "micro data," i.e., observation of the characteristics and choices of individual consumers. Our model of preferences nests random coefficients discrete choice models widely used in practice with...

Persistent link: https://www.econbiz.de/10012463375

Improving the Numerical Performance of BLP Static and Dynamic Discrete Choice Random Coefficients Demand Estimation

Dubé, Jean-Pierre H. - 2009

The widely-used estimator of Berry, Levinsohn and Pakes (1995) produces estimates of consumer preferences from a discrete-choice demand model with random coefficients, market-level demand shocks and endogenous prices. We derive numerical theory results characterizing the properties of the nested...

Persistent link: https://www.econbiz.de/10012463658

Some Answers to the Retirement-Consumption Puzzle

Hurd, Michael D. - 2006

The simple one-good model of life-cycle consumption requires "consumption smoothing." According to previous results based on partial spending and on synthetic panels, British and U.S. households apparently reduce consumption at retirement. The reduction cannot be explained by the simple one-good...

Persistent link: https://www.econbiz.de/10012466612