Consumer Inertia and Dynamic Price Competition
Author
Abstract
Suggested Citation
Download full text from publisher
References listed on IDEAS
- Mary Tripsas & Giovanni Gavetti, 2000. "Capabilities, cognition, and inertia: evidence from digital imaging," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1147-1161, October.
- Stefano DellaVigna, 2009.
"Psychology and Economics: Evidence from the Field,"
Journal of Economic Literature, American Economic Association, vol. 47(2), pages 315-372, June.
- Stefano DellaVigna, 2007. "Psychology and Economics: Evidence from the Field," NBER Working Papers 13420, National Bureau of Economic Research, Inc.
- Keith M. Marzilli Ericson, 2014. "On the Interaction of Memory and Procrastination: Implications for Reminders," NBER Working Papers 20381, National Bureau of Economic Research, Inc.
- Andersen, Steffen & Campbell, John Y. & Meisner-Nielsen, Kasper & Ramadorai, Tarun, 2014.
"Inattention and Inertia in Household Finance: Evidence from the Danish Mortgage Market,"
Scholarly Articles
17492179, Harvard University Department of Economics.
- Campbell, John Y & Nielsen, Kasper Meisner, 2015. "Inattention and Inertia in Household Finance: Evidence from the Danish Mortgage Market," CEPR Discussion Papers 10683, C.E.P.R. Discussion Papers.
- Joseph Farrell & Carl Shapiro, 1988.
"Dynamic Competition with Switching Costs,"
RAND Journal of Economics, The RAND Corporation, vol. 19(1), pages 123-137, Spring.
- Farrell, Joseph & Shapiro, Carl, 1988. "Dynamic Competition with Switching Costs," Department of Economics, Working Paper Series qt1h02g9q4, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Joseph Farrell and Carl Shapiro., 1988. "Dynamic Competition with Switching Costs," Economics Working Papers 8865, University of California at Berkeley.
- Mark Armstrong & John Vickers, 2019.
"Discriminating against Captive Customers,"
American Economic Review: Insights, American Economic Association, vol. 1(3), pages 257-272, December.
- Armstrong, Mark & Vickers, John, 2018. "Discriminating Against Captive Customers," MPRA Paper 89284, University Library of Munich, Germany.
- Mark Armstrong & John Vickers, 2018. "Discriminating Against Captive Customers," Economics Series Working Papers 858, University of Oxford, Department of Economics.
- Sagi, Jacob S., 2006. "Anchored preference relations," Journal of Economic Theory, Elsevier, vol. 130(1), pages 283-295, September.
- Wisnicki, Bartlomiej, 2022. "Consumer inertia fosters product quality," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).
- Michael D. Grubb & Matthew Osborne, 2015.
"Cellular Service Demand: Biased Beliefs, Learning, and Bill Shock,"
American Economic Review, American Economic Association, vol. 105(1), pages 234-271, January.
- Michael D. Grubb & Matthew Osborne, 2012. "Cellular Service Demand: Biased Beliefs, Learning, and Bill Shock," Boston College Working Papers in Economics 829, Boston College Department of Economics.
- Stefania Sitzia & Jiwei Zheng & Daniel Zizzo, 2015. "Inattentive consumers in markets for services," Theory and Decision, Springer, vol. 79(2), pages 307-332, September.
- Farrell, Joseph & Klemperer, Paul, 2007.
"Coordination and Lock-In: Competition with Switching Costs and Network Effects,"
Handbook of Industrial Organization, in: Mark Armstrong & Robert Porter (ed.), Handbook of Industrial Organization, edition 1, volume 3, chapter 31, pages 1967-2072,
Elsevier.
- Klemperer, Paul & Farrell, Joseph, 2006. "Coordination and Lock-In: Competition with Switching Costs and Network Effects," CEPR Discussion Papers 5798, C.E.P.R. Discussion Papers.
- Joseph Farrell & Paul Klemperer, 2006. "Co-ordination and Lock-in: Competition with Switching Costs and Network Effects," Economics Papers 2006-W07, Economics Group, Nuffield College, University of Oxford.
- Farrell, Joseph & Klemperer, Paul, 2006. "Coordination and Lock-In: Competition with Switching Costs and Network Effects," Competition Policy Center, Working Paper Series qt9n26k7v1, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- Ortoleva, Pietro, 2010.
"Status quo bias, multiple priors and uncertainty aversion,"
Games and Economic Behavior, Elsevier, vol. 69(2), pages 411-424, July.
- Ortoleva, Pietro, 2008. "Status Quo Bias, Multiple Priors and Uncertainty Aversion," MPRA Paper 12243, University Library of Munich, Germany.
- Matthew Shum, 2004. "Does Advertising Overcome Brand Loyalty? Evidence from the Breakfast‐Cereals Market," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(2), pages 241-272, June.
- Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 69(1), pages 99-118.
- Samuelson, William & Zeckhauser, Richard, 1988. "Status Quo Bias in Decision Making," Journal of Risk and Uncertainty, Springer, vol. 1(1), pages 7-59, March.
- Ran Spiegler, 2006.
"The Market for Quacks,"
The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(4), pages 1113-1131.
- Rani Spiegler, 2005. "The Market for Quacks," Levine's Bibliography 784828000000000634, UCLA Department of Economics.
- Truman F. Bewley, 1986. "Knightian Decision Theory: Part 1," Cowles Foundation Discussion Papers 807, Cowles Foundation for Research in Economics, Yale University.
- Keith M. Marzilli Ericson & Andreas Fuster, 2011. "Expectations as Endowments: Evidence on Reference-Dependent Preferences from Exchange and Valuation Experiments," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(4), pages 1879-1907.
- Emir Kamenica & Sendhil Mullainathan & Richard Thaler, 2011. "Helping Consumers Know Themselves," American Economic Review, American Economic Association, vol. 101(3), pages 417-422, May.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Wisnicki, Bartlomiej, 2022. "Consumer inertia fosters product quality," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).
- Michael Grubb, 2015.
"Failing to Choose the Best Price: Theory, Evidence, and Policy,"
Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 47(3), pages 303-340, November.
- Michael D. Grubb, 2015. "Failing to Choose the Best Price: Theory, Evidence, and Policy," Boston College Working Papers in Economics 878, Boston College Department of Economics.
- Adams, Paul & Hunt, Stefan & Palmer, Christopher & Zaliauskas, Redis, 2021. "Testing the effectiveness of consumer financial disclosure: Experimental evidence from savings accounts," Journal of Financial Economics, Elsevier, vol. 141(1), pages 122-147.
- Ericson, Keith M. Marzilli, 2020.
"When consumers do not make an active decision: Dynamic default rules and their equilibrium effects,"
Games and Economic Behavior, Elsevier, vol. 124(C), pages 369-385.
- Keith M. Marzilli Ericson, 2014. "When Consumers Do Not Make an Active Decision: Dynamic Default Rules and their Equilibrium Effects," NBER Working Papers 20127, National Bureau of Economic Research, Inc.
- Karle, Heiko & Schumacher, Heiner & Vølund, Rune, 2023.
"Consumer loss aversion and scale-dependent psychological switching costs,"
Games and Economic Behavior, Elsevier, vol. 138(C), pages 214-237.
- Heiko Karle & Heiner Schumacher & Rune Vølund, 2021. "Consumer Loss Aversion and Scale-Dependent Psychological Switching Costs," CESifo Working Paper Series 9313, CESifo.
- Walter Bossert & Yves Sprumont, 2009.
"Non‐Deteriorating Choice,"
Economica, London School of Economics and Political Science, vol. 76(302), pages 337-363, April.
- Bossert, W. & Sprumont, Y., 2001. "Non-Deteriorating Choice," Cahiers de recherche 2001-01, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- BOSSERT, Walter & SPRUMONT, Yves, 2001. "Non-Deteriorating Choice," Cahiers de recherche 2001-01, Universite de Montreal, Departement de sciences economiques.
- Daniele Pennesi, 2013. "Endogenous Status Quo," Carlo Alberto Notebooks 314, Collegio Carlo Alberto.
- Gilbert, Ben & Graff Zivin, Joshua S., 2020.
"Dynamic corrective taxes with time-varying salience,"
Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
- Ben Gilbert & Joshua S. Graff Zivin, 2018. "Dynamic corrective taxes with time-varying salience," Working Papers 2018-05, Colorado School of Mines, Division of Economics and Business.
- Ben Gilbert & Joshua S. Graff Zivin, 2018. "Dynamic Corrective Taxes with Time-Varying Salience," NBER Working Papers 25014, National Bureau of Economic Research, Inc.
- Genakos, Christos & Roumanias, Costas & Valletti, Tommaso, 2023.
"Is having an expert “friend” enough? An analysis of consumer switching behavior in mobile telephony,"
Journal of Economic Behavior & Organization, Elsevier, vol. 213(C), pages 359-372.
- Genakos, C. & Roumanias, C. & Valletti, T., 2023. "Is Having an Expert "Friend" Enough? An Analysis of Consumer Switching Behavior in Mobile Telephony," Cambridge Working Papers in Economics 2351, Faculty of Economics, University of Cambridge.
- Christos Genakos & Costas Roumanias & Tommaso Valletti, 2023. "Is having an expert "friend" enough? An analysis of consumer switching behavior in mobile telephony," CEP Discussion Papers dp1939, Centre for Economic Performance, LSE.
- Genakos, Christos & Roumanias, Costas & Valletti, Tommaso, 2023. "Is having an expert "friend" enough? An analysis of consumer switching behavior in mobile telephony," LSE Research Online Documents on Economics 121294, London School of Economics and Political Science, LSE Library.
- Christos Genakos & Costas Roumanias & Tommaso Valletti, 2023. "Is Having an Expert "Friend" Enough? An Analysis of Consumer Switching Behavior in Mobile Telephony," POID Working Papers 079, Centre for Economic Performance, LSE.
- Ortoleva, Pietro, 2010.
"Status quo bias, multiple priors and uncertainty aversion,"
Games and Economic Behavior, Elsevier, vol. 69(2), pages 411-424, July.
- Ortoleva, Pietro, 2008. "Status Quo Bias, Multiple Priors and Uncertainty Aversion," MPRA Paper 12243, University Library of Munich, Germany.
- Guney, Begum & Richter, Michael, 2018. "Costly switching from a status quo," Journal of Economic Behavior & Organization, Elsevier, vol. 156(C), pages 55-70.
- Heiko Karle & Heiner Schumacher & Rune Vølund, 2020.
"Consumer search and the uncertainty effect,"
Working Papers of Department of Economics, Leuven
657766, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
- Karle, Heiko & Schumacher, Heiner & Volund, Rune, 2021. "Consumer Search and the Uncertainty Effect," CEPR Discussion Papers 15967, C.E.P.R. Discussion Papers.
- Michael Grubb, 2015. "Behavioral Consumers in Industrial Organization: An Overview," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 47(3), pages 247-258, November.
- David Ronayne, 2020. "The Only Dance in Town: Unique Equilibrium in a Generalized Model of Price Competition," Economics Series Working Papers 874, University of Oxford, Department of Economics.
- Robin Maialeh, 2019. "Generalization of results and neoclassical rationality: unresolved controversies of behavioural economics methodology," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(4), pages 1743-1761, July.
- Dai Zusai, 2018. "Tempered best response dynamics," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(1), pages 1-34, March.
- Karsten Hansen & Kanishka Misra & Robert Evan Sanders, 2024. "Uninformed Choices in Perishables," Marketing Science, INFORMS, vol. 43(4), pages 751-777, July.
- Paha, Johannes & Rompf, Dirk & Warnecke, Christiane, 2013. "Customer choice patterns in passenger rail competition," Transportation Research Part A: Policy and Practice, Elsevier, vol. 50(C), pages 209-227.
- Spyros Galanis, 2021.
"Dynamic consistency, valuable information and subjective beliefs,"
Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(4), pages 1467-1497, June.
- Galanis, S., 2019. "Dynamic Consistency, Valuable Information and Subjective Beliefs," Working Papers 19/02, Department of Economics, City University London.
- Roee Teper, 2010. "Probabilistic Dominance and Status Quo Bias," Working Paper 5864, Department of Economics, University of Pittsburgh.
More about this item
Keywords
decision making; inertia; default effect; anecdotal reasoning;All these keywords.
JEL classification:
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sgh:gosnar:y:2024:i:4:p:30-50. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Grzegorz Konat (email available below). General contact details of provider: https://edirc.repec.org/data/sgwawpl.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.