Behavioral Consumers in Industrial Organization: An Overview

Michael Grubb ()
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Michael Grubb: http://www2.bc.edu/michael-grubb/
Authors registered in the RePEc Author Service: Michael J. Grubb and Michael D. Grubb

Review of Industrial Organization, 2015, vol. 47, issue 3, 247-258

Abstract: This paper overviews three primary branches of the industrial organization literature with behavioral consumers. The literature is organized according to whether consumers: (1) have non-standard preferences; (2) are overconfident or otherwise biased such that they systematically misweight different dimensions of price and other product attributes; or (3) fail to choose the best price due to suboptimal search, confusion comparing prices, or excessive inertia. The importance of consumer heterogeneity and equilibrium effects are also highlighted along with recent empirical work. Copyright Springer Science+Business Media New York 2015

Keywords: Behavioral industrial organization; Bounded rationality; Loss aversion; Present bias; Overconfidence; Exploitative contracting; Search; Obfuscation; Switching; Inertia; D41; D42; D43; D81; D82; D83; L11; L12; L13; L15 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (48)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:revind:v:47:y:2015:i:3:p:247-258

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DOI: 10.1007/s11151-015-9477-9

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