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We propose a method to quantify other-regarding preferences in group decisions. Our method is based on revealed preference theory. It measures willingness-to- pay for others’ consumption and willingness-to-pay for equality in consumption by evaluating consumption externalities in monetary...
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Some economists argue that consumption of publicly visible goods is driven by social status. Making a causal inference … status or randomly assigned. Making consumption choices visible leads to a large increase in demand when income is linked to … status, but not otherwise. We investigate the characteristics that mediate this effect and estimate its impact on welfare …
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This paper examines how a firm can strategically choose its capacity to manipulate consumer beliefs about aggregate demand. It looks at a market with social effects where consumers want to do what is popular, to buy what they believe others want to buy. By imposing a capacity constraint and...
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