Showing 1 - 10 of 17
Persistent link: https://www.econbiz.de/10012216439
We study targeted information in a duopoly model with differentiated products, allowing for consumers with limited attention. The presence of inattentive consumers incentivizes firms to behave as if they were mass-advertisers, despite their ability to direct their messages precisely towards...
Persistent link: https://www.econbiz.de/10011508048
We examine the implications of limited consumer attention for the targeting decisions of competing firms. Limited attention alters the strategic role of information provision as firms may become incentivized to behave as mass advertisers, despite perfect targeting abilities. We analyze the...
Persistent link: https://www.econbiz.de/10012154264
Persistent link: https://www.econbiz.de/10009492046
I present a game-theoretic model where economic competition and attention competition are interdependent. On the one hand the effort to attract consumer attention depends on the value of attention to the firm which depends on the grade of price competition among all perceived firms. On the other...
Persistent link: https://www.econbiz.de/10009739425
Persistent link: https://www.econbiz.de/10012026408
Persistent link: https://www.econbiz.de/10011986045
Choice-based health insurance systems allow individuals to select a health plan that fits their needs. However, bounded rationality and limited attention may lead to sub-optimal insurance coverage and higher-than-expected out-of-pocket payments. In this paper, we study the impact of providing...
Persistent link: https://www.econbiz.de/10011857122
Persistent link: https://www.econbiz.de/10009259517
We propose a model of competitive attention based on two key premises: i) People have limited information processing capacities and ii) consideration sets are formed according to relative salience. The equilibrium predictions we obtain can help to understand, and connect, diverse empirical...
Persistent link: https://www.econbiz.de/10012510634