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We analyze the effects of consumers' limited attention on welfare in a model of horizontal product differentiation. We present a novel approach of modeling limited attention: an attention radius. Each consumer only notices goods that are within her attention radius, i.e., goods that are...
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information available on eBay about buyer experience and bidding behavior correlates with the observed price deviation. Sellers … format leads to prices substantially below those expected in second-price auctions. Moreover, our results reveal that the … respond strategically to this information. More experienced sellers ask for higher BIN-prices, whereas seller risk aversion …
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