Arbeitspapier
Horizontal product differentiation with limited attentive consumers
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 sufficiently similar to her preferred version of the good. Limited attention induces firms to differentiate their products in a way that is beneficial to consumers. In addition, prices may be lower under limited than under full attention. Consumer surplus and welfare are not maximized under full attention but increase for some degree of limited attention.
- ISBN
-
978-3-943153-64-4
- Sprache
-
Englisch
- Erschienen in
-
Series: BERG Working Paper Series ; No. 143
- Klassifikation
-
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Oligopoly and Other Imperfect Markets
- Thema
-
Attention
Horizontal Product Differentiation
Hotelling
Price Discrimination
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Saur, Marc P.
Schlatterer, Markus G.
Schmitt, Stefanie Yvonne
- Ereignis
-
Veröffentlichung
- (wer)
-
Bamberg University, Bamberg Economic Research Group (BERG)
- (wo)
-
Bamberg
- (wann)
-
2019
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Saur, Marc P.
- Schlatterer, Markus G.
- Schmitt, Stefanie Yvonne
- Bamberg University, Bamberg Economic Research Group (BERG)
Entstanden
- 2019
Ähnliche Objekte (12)
Horizontal product differentiation with limited attentive consumers
Tie-in sales and horizontal product differentiation
Heterogeneous consumers, vertical product differentiation and the rate of innovation
Network effects, compatibility decisions, and horizontal product differentiation
Endogenous Choice Between Horizontal and Vertical Product Differentiation
Network effects, compatibility decisions, and horizontal product differentiation
Price Competition and Product Differentiation when Consumers Care for the Environment
Price Competition and Product Differentiation when Consumers Care for the Environment
On the Dichotomy between Horizontal and Vertical Product Differentiation
Horizontal product differentiation in Varian’s model of sales
An Econometric Analysis of Exports of Metals: Product Differentiation and Limited Output Capacity
Consumers, product safety standards and international trade
Horizontal product differentiation with limited attentive consumers
Tie-in sales and horizontal product differentiation
Heterogeneous consumers, vertical product differentiation and the rate of innovation
Network effects, compatibility decisions, and horizontal product differentiation
Endogenous Choice Between Horizontal and Vertical Product Differentiation
Network effects, compatibility decisions, and horizontal product differentiation
Price Competition and Product Differentiation when Consumers Care for the Environment
Price Competition and Product Differentiation when Consumers Care for the Environment
On the Dichotomy between Horizontal and Vertical Product Differentiation
Horizontal product differentiation in Varian’s model of sales
An Econometric Analysis of Exports of Metals: Product Differentiation and Limited Output Capacity
Consumers, product safety standards and international trade
Horizontal product differentiation with limited attentive consumers
Tie-in sales and horizontal product differentiation
Heterogeneous consumers, vertical product differentiation and the rate of innovation
Network effects, compatibility decisions, and horizontal product differentiation
Endogenous Choice Between Horizontal and Vertical Product Differentiation
Network effects, compatibility decisions, and horizontal product differentiation
Price Competition and Product Differentiation when Consumers Care for the Environment
Price Competition and Product Differentiation when Consumers Care for the Environment
On the Dichotomy between Horizontal and Vertical Product Differentiation
Horizontal product differentiation in Varian’s model of sales
An Econometric Analysis of Exports of Metals: Product Differentiation and Limited Output Capacity