Price discrimination and salience-driven consumer preferences

Arbeitspapier

This paper generalizes the price discrimination framework of Mussa and Rosen (1978) by considering salience-driven consumer preferences in the sense of Bordalo et al. (2013b). Consumers with salience-driven preferences give a higher weight to attributes that vary more. This reduces the monopolist's propensity to treat different types of consumers differently. The paper's main result characterizes the conditions under which the monopolist induces consumers to focus on price rather than on quality.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Discussion Papers ; No. 19-06

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Consumer Economics: Theory ; Market Structure, Pricing, and Design: Monopoly ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Production, Pricing, and Market Structure; Size Distribution of Firms
• Thema: Salience ; price discrimination ; monopolist

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Adrian, Nana
• Ereignis: Veröffentlichung
• (wer): University of Bern, Department of Economics
• (wo): Bern
• (wann): 2019

Weitere Informationen

• Handle: http://hdl.handle.net/10419/204932
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ