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Smartphone app designers often use behavioral design to influence users, increase sales, and boost advertising revenue. Behavioral design relies on elements ranging from app appearance to black-box algorithms and personalization. It commonly exploits behavioral biases, such as the lack of...
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This paper shows that the provision of consumer rights can decrease welfare when some consumers remain ignorant of these rights. We find that consumers uninformed about a mandated warranty demand excessively safe products in some circumstances. In other circumstances, uninformed consumers buy...
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