Pricing When Customers Care About Fairness But Misinfer Markups
Download Pricing When Customers Care About Fairness But Misinfer Markups full books in PDF, epub, and Kindle. Read online free Pricing When Customers Care About Fairness But Misinfer Markups ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Author | : Erik Eyster |
Publisher | : |
Total Pages | : 0 |
Release | : 2017 |
Genre | : |
ISBN | : |
This paper proposes a theory of price rigidity consistent with survey evidence that firms stabilize prices out of fairness to their consumers. The theory relies on two psychological assumptions. First, customers care about the fairness of prices: fixing the price of a good, consumers enjoy it more at a low markup than at a high markup. Second, customers underinfer marginal costs from prices: when prices rise due to an increase in marginal costs, customers underappreciate the increase in marginal costs and partially misattribute higher prices to higher markups. Firms anticipate customers' reaction and trim their price increases. Hence, the passthrough of marginal costs into prices falls short of one--prices are somewhat rigid. Embedded in a simple macroeconomic model, our pricing theory produces nonneutral monetary policy, a short-run Phillips curve that involves both past and future inflation rates, a hump-shaped impulse response of output to monetary policy, and a nonvertical long-run Phillips curve.
Author | : |
Publisher | : Elsevier |
Total Pages | : 530 |
Release | : 2019-01-29 |
Genre | : Business & Economics |
ISBN | : 0444633960 |
Handbook of Behavioral Economics, Volume 2, Foundations and Applications offers critical perspectives on theoretical work within behavioral economics, delivering a comprehensive, critical, up-to-date, and accessible review of the field that has always been missing. This literature summary of the conceptual foundations underlying behavioral economics is written by, and for, economists, with chapters covering Intertemporal choice, Reference-dependent preferences, Beliefs, Cognition, Social preferences, Behavioral game theory, Welfare, and Neuroeconomics. - Helps academic and non-academic economists understand recent rapid changes in theoretical advances within behavioral economics - Designed for economists already convinced of the benefits of behavioral economics and mainstream economists who feel threatened by new developments in behavioral economics - Written for those who wish to become quickly acquainted with behavioral economics
Author | : Andreas Pollak |
Publisher | : Mohr Siebeck |
Total Pages | : 204 |
Release | : 2007 |
Genre | : Business & Economics |
ISBN | : 9783161493041 |
Designing a good unemployment insurance scheme is a delicate matter. In a system with no or little insurance, households may be subject to a high income risk, whereas excessively generous unemployment insurance systems are known to lead to high unemployment rates and are costly both from a fiscal perspective and for society as a whole. Andreas Pollak investigates what an optimal unemployment insurance system would look like, i.e. a system that constitutes the best possible compromise between income security and incentives to work. Using theoretical economic models and complex numerical simulations, he studies the effects of benefit levels and payment durations on unemployment and welfare. As the models allow for considerable heterogeneity of households, including a history-dependent labor productivity, it is possible to analyze how certain policies affect individuals in a specific age, wealth or skill group. The most important aspect of an unemployment insurance system turns out to be the benefits paid to the long-term unemployed. If this parameter is chosen too high, a large number of households may get caught in a long spell of unemployment with little chance of finding work again. Based on the predictions in these models, the so-called "Hartz IV" labor market reform recently adopted in Germany should have highly favorable effects on the unemployment rates and welfare in the long run.
Author | : Rigas Doganis |
Publisher | : Routledge |
Total Pages | : 256 |
Release | : 2005-06-28 |
Genre | : Business & Economics |
ISBN | : 1134618204 |
This book focuses on the major issues that will affect the airline industry in this new millennium. It tells of an industry working on low margins and of cut-throat competition resulting from 'open skies'. Among the issues discussed are: * the low-cost airline * the impact of electronic commerce * the debate on global airline alliances * privatizing state-owned airlines * the creation of a Trans Atlantic Common Aviation area Most importantly, the book carefully analyzes the strategies that are needed for airlines to succeed in the twenty-first century. This is essential reading for anyone interested in aviation.
Author | : Martin Lindstrom |
Publisher | : Currency |
Total Pages | : 274 |
Release | : 2010-02-02 |
Genre | : Business & Economics |
ISBN | : 0385523890 |
NEW YORK TIMES BESTSELLER • “A fascinating look at how consumers perceive logos, ads, commercials, brands, and products.”—Time How much do we know about why we buy? What truly influences our decisions in today’s message-cluttered world? In Buyology, Martin Lindstrom presents the astonishing findings from his groundbreaking three-year, seven-million-dollar neuromarketing study—a cutting-edge experiment that peered inside the brains of 2,000 volunteers from all around the world as they encountered various ads, logos, commercials, brands, and products. His startling results shatter much of what we have long believed about what captures our interest—and drives us to buy. Among the questions he explores: • Does sex actually sell? • Does subliminal advertising still surround us? • Can “cool” brands trigger our mating instincts? • Can our other senses—smell, touch, and sound—be aroused when we see a product? Buyology is a fascinating and shocking journey into the mind of today's consumer that will captivate anyone who's been seduced—or turned off—by marketers' relentless attempts to win our loyalty, our money, and our minds.
Author | : |
Publisher | : Elsevier |
Total Pages | : 749 |
Release | : 2018-09-27 |
Genre | : Business & Economics |
ISBN | : 0444633898 |
Handbook of Behavioral Economics: Foundations and Applications presents the concepts and tools of behavioral economics. Its authors are all economists who share a belief that the objective of behavioral economics is to enrich, rather than to destroy or replace, standard economics. They provide authoritative perspectives on the value to economic inquiry of insights gained from psychology. Specific chapters in this first volume cover reference-dependent preferences, asset markets, household finance, corporate finance, public economics, industrial organization, and structural behavioural economics. This Handbook provides authoritative summaries by experts in respective subfields regarding where behavioral economics has been; what it has so far accomplished; and its promise for the future. This taking-stock is just what Behavioral Economics needs at this stage of its so-far successful career. - Helps academic and non-academic economists understand recent, rapid changes in theoretical and empirical advances within behavioral economics - Designed for economists already convinced of the benefits of behavioral economics and mainstream economists who feel threatened by new developments in behavioral economics - Written for those who wish to become quickly acquainted with behavioral economics
Author | : Ms.Dora Benedek |
Publisher | : International Monetary Fund |
Total Pages | : 41 |
Release | : 2015-09-30 |
Genre | : Business & Economics |
ISBN | : 1513586351 |
This paper estimates the pass through of VAT changes to consumer prices, using a unique dataset providing disaggregated, monthly data on prices and VAT rates for 17 Eurozone countries over 1999-2013. Pass through is much less than full on average, and differs markedly across types of VAT change. For changes in the standard rate, for instance, final pass through is about 100 percent; for reduced rates it is significantly less, at around 30 percent; and for reclassifications it is essentially zero. We also find: differing dynamics of pass through for durables and non-durables; no significant difference in pass through between rate increases and decreases; signs of non-monotonicity in the relationship between pass through and the breadth of the consumption base affected; and indications of significant anticipation effects together with some evidence of lagged effects in the two years around reform. The results are robust against endogeneity and attenuation bias.
Author | : Victor J. Tremblay |
Publisher | : Edward Elgar Publishing |
Total Pages | : 483 |
Release | : 2018 |
Genre | : Economics |
ISBN | : 178471898X |
The Handbook of Behavioral Industrial Organization integrates behavioral economics into industrial organization. Chapters cover concepts such as relative thinking, salience, shrouded attributes, cognitive dissonance, motivated reasoning, confirmation bias, overconfidence, status quo bias, social cooperation and identity. Additional chapters consider industry issues, such as sports and gambling industries, neuroeconomic studies of brands and advertising, and behavioral antitrust law. The Handbook features a wide array of methods (literature surveys, experimental and econometric research, and theoretical modelling), facilitating accessibility to a wide audience.
Author | : Barbara H. Fried |
Publisher | : Harvard University Press |
Total Pages | : 350 |
Release | : 2009-07-01 |
Genre | : Law |
ISBN | : 0674037308 |
Law and economics is the leading intellectual movement in law today. This book examines the first great law and economics movement in the early part of the twentieth century through the work of one of its most original thinkers, Robert Hale. Beginning in the 1890s and continuing through the 1930s, progressive academics in law and economics mounted parallel assaults on free-market economic principles. They showed first that "private," unregulated economic relations were in fact determined by a state-imposed regime of property and contract rights. Second, they showed that the particular regime of rights that existed at that time was hard to square with any common-sense notions of social justice. Today, Hale is best known among contemporary legal academics and philosophers for his groundbreaking writings on coercion and consent in market relations. The bulk of his writing, however, consisted of a critique of natural property rights. Taken together, these writings on coercion and property rights offer one of the most profound and elaborated critiques of libertarianism, far outshining the better-known efforts of Richard Ely and John R. Commons. In his writings on public utility regulation, Hale also made important contributions to a theory of just, market-based distribution. This first, full-length study of Hale's work should be of interest to legal, economic, and intellectual historians.
Author | : Drew Fudenberg |
Publisher | : MIT Press |
Total Pages | : 304 |
Release | : 1998 |
Genre | : Business & Economics |
ISBN | : 9780262061940 |
This work explains that equilibrium is the long-run outcome of a process in which non-fully rational players search for optimality over time. The models they e×plore provide a foundation for equilibrium theory and suggest ways for economists to evaluate and modify traditional equilibrium concepts.