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We study optimal monopoly pricing with evasive consumers. The monopolist uses consumer data to estimate demand and menu pricing to optimally screen the residual uncertainty about consumers' preferences. Third degree price discrimination encourages data-conscious consumers to manipulate their...
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When a decision-maker's attention is limited, her decisions depend on what she focuses on. This gives interested parties an incentive to manipulate not only the substance of communication but also the decision-maker's attention allocation. This paper models such attention manipulation. In its...
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Limits on consumer attention give firms incentives to manipulate prospective buyers' allocation of attention. This paper models such attention manipulation and shows that it limits the ability of disclosure regulation to improve consumer welfare. Competitive information supply, from firms...
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Social media has greatly changed the game in e-commerce. The convergence of social media and e-commerce means that online users can now influence purchase intention on social commerce sites via user-generated contents and viral effect. In the setting of online purchase, customers do not get to...
Persistent link: https://www.econbiz.de/10014141160
Limits on consumer attention give firms incentives to manipulate prospective buyers' allocation of attention. This paper models such attention manipulation and shows that it limits the ability of disclosure regulation to improve consumer welfare. Competitive information supply, from firms...
Persistent link: https://www.econbiz.de/10012946040