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Consumers need information to compare alternatives for markets to function efficiently. Recognizing this, public policies often pair competition with easy access to comparative information. The implicit assumption is that comparison friction--the wedge between the availability of comparative...
Persistent link: https://www.econbiz.de/10012461248
the beliefs of millions of consumers than a handful of bureaucrats. As such, recognizing the limits of human cognition may …
Persistent link: https://www.econbiz.de/10012466882
exploitation coexist. Optimizing firms exploit myopic consumers through marketing schemes that shroud high-priced add-ons. In turn …, sophisticated consumers exploit these marketing schemes. It is not possible to profitably drive away the business of sophisticates …
Persistent link: https://www.econbiz.de/10012466916
This paper studies the consumption decisions of agents who face costs of acquiring, absorbing and processing information. These consumers rationally choose to only sporadically update their information and re-compute their optimal consumption plans. In between updating dates, they remain...
Persistent link: https://www.econbiz.de/10012467804
We examine misconduct in credence good markets with price taking experts. We propose a market-level model in which price-taking experts extract surplus based on the value of their firm's brand and their own skill. We test the predictions of the model using sales complaint data for exclusive and...
Persistent link: https://www.econbiz.de/10012460054
We review the fast-growing work on salience and economic behavior. Psychological research shows that salient stimuli attract human attention "bottom up" due to their high contrast with surroundings, their surprising nature relative to recalled experiences, or their prominence. The Bordalo,...
Persistent link: https://www.econbiz.de/10012629494
We provide strong evidence of advantageous selection in the Medigap insurance market, and analyze its sources. Using Medicare Current Beneficiary Survey (MCBS) data, we find that, conditional on controls for the price of Medigap, medical expenditures for senior citizens with Medigap coverage...
Persistent link: https://www.econbiz.de/10012466379
Misinformation represents a vital threat to the societal fabric of modern economies. While the supply side of the misinformation market has begun to receive increased scrutiny, the demand side has received scant attention. We explore the demand for misinformation through the lens of augmenting...
Persistent link: https://www.econbiz.de/10014528405
effects of declines in fine motor skills and cognition are not statistically different across differing occupational job …
Persistent link: https://www.econbiz.de/10012480880
cognition for respondents in two developing countries: China and Indonesia, both with very low educated elderly populations …Schooling levels are monotonically and significantly related to higher levels of cognition for all three of the … expenditure (pce) is positively associated with cognition, more so in China. Other SES characteristics such as height, are also …
Persistent link: https://www.econbiz.de/10012453134