Showing 1 - 10 of 103
We develop a model of search among substitutes for the best combination of commodity variant and price, in which the … structure of search costs can be manipulated by the suppliers of these variants, e.g. by joining an existing market or opening a …
Persistent link: https://www.econbiz.de/10005136540
Why are some people more optimistic about their life than others? Literature on locus of control suggests that optimism is associated with the belief that one’s life outcomes are controlled by internal factors, such as ability, instead of external factors, such as powerful others or...
Persistent link: https://www.econbiz.de/10005051053
We extend the persuasion game to bring it squarely into the economics of advertising. We model advertising as exciting consumer interest into learning more about the product, and determine a firm's equilibrium choice of advertising content over quality information, price information, and...
Persistent link: https://www.econbiz.de/10010733987
We study a model of strategic persuasion based on the theory of cheap talk, in which a better-informed agent manipulates two decision-makers’ joint decision on alternative proposals. With the heterogeneity of two decision-makers’ value of the outside option, only the decision-maker with the...
Persistent link: https://www.econbiz.de/10010906368
This paper develops a dynamic model of consumer search that, despite placing very little structure on the dynamic … problem faced by consumers, allows us to exploit intertemporal variation in within-period price and search cost distributions … to estimate the population distribution from which consumers' search costs are initially drawn. We show that static …
Persistent link: https://www.econbiz.de/10010941701
of efficiency gains, namely lower search costs, better matching, and more intense product market price-competition.  A … monopolistic search engine charges advertisers too high a price, and has incentives to provide a suboptimal matching quality …Search engines enable advertisers to target consumers based on the query they have entered.  In a framework with …
Persistent link: https://www.econbiz.de/10011004434
presence of savvy consumers improves the deals available to non-savvy consumers in the market (the case of search externalities …
Persistent link: https://www.econbiz.de/10011004454
This paper studies communication in a static Cournot duopoly model under the assumption that the firms have unverifiable private information about their costs. We investigate the conditions under which the firms cannot transmit any information through cheap talk, and show that when these...
Persistent link: https://www.econbiz.de/10010930788
consistent with a model of incomplete learning, fatigue and either confirmation bias or costly search coupled with unbiased …
Persistent link: https://www.econbiz.de/10011220335
consistent with a model of incomplete learning, fatigue and either confirmation bias or costly search coupled with unbiased …
Persistent link: https://www.econbiz.de/10011220348