Thursday, August 4, 2011
Posted by D. Daniel Sokol
Steffen Huck and Jidong Zhou (both University College London Econ) have written on Consumer behavioural biases in competition: A survey.
ABSTRACT: This is a survey of studies that examine competition in the presence of behaviourally biased or boundedly rational consumers. It will tackle questions such as: How does competition and pricing change when consumers are biased? Can inefficiencies that arise from consumer behavioural biases be mitigated by lowering barriers to entry? Do biased consumers make rational ones better or worse off? And will biased consumer behaviour be overcome through learning or education?