Bounded Rationality and Industrial Organization PDF ePub eBook

Books Info:

Bounded Rationality and Industrial Organization free pdf Conventional economic theory assumes that consumers are fully rational, that they have well-defined preferences and easily understand the market environment. Yet, in fact, consumers may have inconsistent, context-dependent preferences or simply not enough brain-power to evaluate and compare complicated products. Thus the standard model of consumer behavior-which depends on an ideal market in which consumers are boundlessly rational-is called into question. While behavioral economists have for some time confirmed and characterized these inconsistencies, the logical next step is to examine the implications they have in markets. Grounded in key observations in consumer psychology, Bounded Rationality and Industrial Organization develops non-standard models of "boundedly rational" consumer behavior and embeds them into familiar models of markets. It then rigorously analyses each model in the tradition of microeconomic theory, leading to a richer, more realistic picture of consumer behavior. Ran Spiegler analyses phenomena such as exploitative price plans in the credit market, complexity of financial products and other obfuscation practices, consumer antagonism to unexpected price increases, and the role of default options in consumer decision making. Spiegler unifies the relevant literature into three main strands: limited ability to anticipate and control future choices, limited ability to understand complex market environments, and sensitivity to reference points. Although the challenge of enriching the psychology of decision makers in economic models has been at the frontier of theoretical research in the last decade, there has been no graduate-level, theory-oriented textbook to cover developments in the last 10-15 years. Thus, Bounded Rationality and Industrial Organization offers a welcome and crucial new understanding of market behavior-it challenges conventional wisdom in ways that are interesting and economically significant, and which in the end effect the well-being of all market participants.

About Ran Spiegler

Professor of Economics at Tel Aviv University and University College London

Details Book

Author : Ran Spiegler
Publisher : Oxford University Press Inc
Data Published : 27 February 2014
ISBN : 0199334269
EAN : 9780199334261
Format Book : PDF, Epub, DOCx, TXT
Number of Pages : 240 pages
Age + : 15 years
Language : English
Rating :

Reviews Bounded Rationality and Industrial Organization

17 Comments Add a comment

Related eBooks Download

  • Consumer Asia: 2010 free pdfConsumer Asia: 2010

    "Consumer Asia 2010" is a valuable reference book for would-be exporters to understand consumer markets. It provides hard-to-research market size statistics for hundreds of consumer products..

  • Revealed Preference Theory free pdfRevealed Preference Theory

    Pioneered by American economist Paul Samuelson. revealed preference theory is based on the idea that the preferences of consumers are revealed in their purchasing behavior. Researchers in this field have developed complex and sophisticated mathematical models to capture the preferences that are 'revealed' through consumer choice behavior..

  • Research in Consumer Behavior free pdfResearch in Consumer Behavior

    "Research in Consumer Behavior" presents cutting-edge consumer research. whether empirical or conceptual. qualitative or quantitative. The majority of papers in this volume have been selected from the best papers at the 2011 Consumer Culture Theory Conference held in Chicago Illinois in July..

  • Market Volatility free pdfMarket Volatility

    "Market Volatility" proposes an innovative theory. backed by substantial statistical evidence. on the cuases of price fluctuations in speculative markets. It challenges the standard efficient-markets model for explaining asset prices by emphasizing the significant role that popular opinion or psychology can play in price volatility..

  • Consumer Expenditures free pdfConsumer Expenditures

    Changing consumer choices have built microchip factories where cotton fields used to be and have doomed cities from New Bedford to Detroit. while the impact of these choices on jobs and tax revenues has stimulated the creation of models of consumer behavior..

  • Bounded Rationality and Industrial Organization free pdfBounded Rationality and Industrial Organization

    How To Download A Ebook. Conventional economic theory assumes that consumers are fully rational, that they have well-defined preferences and easily understand the market environment. Yet, in fact, co