Explaining consumer motives to purchase in the informal economy

Abstract: Usually, studies on the informal economy focus mainly upon those working in the informal economy (supply side). However, many exchanges in the informal economy are initiated by purchasers asking how much a good or service costs if paid cash in hand. Therefore, the aim of this paper is to advance understanding of who make purchases in the informal economy and the reasons of the consumers making these purchases (demand side). Two potential explanations are evaluated. Firstly, consumers are explained as rational economic actors seeking a more convenient deal or profit maximisation (i.e., lower price or better value for money), making purchases from the informal economy due to the lack of availability of the product or service they need on the formal market, or they make such purchases involuntarily, due to the lack of perfect information necessary to make a fully rational economic decision when purchasing. Secondly, the consumers are portrayed as social actors pursuing community help

Location
Deutsche Nationalbibliothek Frankfurt am Main
Extent
Online-Ressource
Language
Englisch
Notes
Veröffentlichungsversion
begutachtet (peer reviewed)
In: PLOS ONE ; 16 (2021) 10 ; 1-22

Classification
Wirtschaft

Event
Veröffentlichung
(where)
Mannheim
(who)
SSOAR, GESIS – Leibniz-Institut für Sozialwissenschaften e.V.
(when)
2021
Creator
Horodnic, Ioana Alexandra
Williams, Colin Charles
Windebank, Jan
Zaiț, Adriana
Ciobanu, Claudia Ioana

DOI
10.1371/journal.pone.0258686
URN
urn:nbn:de:0168-ssoar-78834-0
Rights
Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
Last update
14.08.2025, 11:02 AM CEST

Data provider

This object is provided by:
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Associated

  • Horodnic, Ioana Alexandra
  • Williams, Colin Charles
  • Windebank, Jan
  • Zaiț, Adriana
  • Ciobanu, Claudia Ioana
  • SSOAR, GESIS – Leibniz-Institut für Sozialwissenschaften e.V.

Time of origin

  • 2021

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