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Competitive Framing

Ran Spiegler ()

American Economic Journal: Microeconomics, 2014, vol. 6, issue 3, 35-58

Abstract: I present a simple framework for modeling two-firm market competition when consumer choice is "frame-dependent", and firms use costless "marketing messages" to influence the consumer's frame. This framework embeds several recent models in the "behavioral industrial organization" literature. I identify a property that consumer choice may satisfy, which extends the concept of Weighted Regularity due to Piccione and Spiegler (2012), and provide a characterization of Nash equilibria under this property. I use this result to analyze the equilibrium interplay between competition and framing in a variety of applications.

JEL-codes: D43 D82 M31 (search for similar items in EconPapers)
Date: 2014
Note: DOI: 10.1257/mic.6.3.35
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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