We use an experiment to test whether consumers optimally acquire information on energy costs in appliance markets where, like many contexts, consumers are poorly informed and make mistakes despite freely available information. To test for optimal information acquisition we compare the average utility gain from improved decision making due to information with willingness to pay for information. We find that consumers acquire information suboptimally. We then compare two behavioral policies: a conventional subsidy for energy-efficient products and a non-traditional subsidy paying consumers to acquire information on energy costs. The welfare effects of each policy depend on the benefits of improved decisions versus the losses of mental effort (from the information subsidy) or distorted choices (from the product subsidy). In our context, information subsidies dominate product subsidies. In a variety of settings where decisions are made and information is delivered online, paying for attention could more effectively target welfare improvements.

It is often said that everyone understands precisely what is meant by the notion of probability-except those who have spent their lives studying the matter. Upon close scrutiny, the intuitively obvious idea of probability becomes quite elusive. Is it a subjective or objective concept? Are random variables simply improperly measured deterministic variables, or inherently random? What is meant by the phrase "other things held constant" that often appears in descriptions of probability? These questions involve fundamental philosophical and scientific issues, and promise to elude definitive answers for some time. The same type of difficulty arises when attempting to produce a volume on microeconomic theory. The obvious first question-what is microeconomic theory?--

Industrial Organization: Markets and Strategies provides an up-to-date account of modern industrial organization that blends theory with real-world applications. Written in a clear and accessible style, it acquaints the reader with the most important models for understanding strategies chosen by firms with market power and shows how such firms adapt to different market environments. It covers a wide range of topics including recent developments on product bundling, branding strategies, restrictions in vertical supply relationships, intellectual property protection, and two-sided markets, to name just a few. Models are presented in detail and the main results are summarized as lessons. Formal theory is complemented throughout by real-world cases that show students how it applies to actual organizational settings. The book is accompanied by a website containing a number of additional resources for lecturers and students, including exercises, answers to review questions, case material and slides.

In the world of economics and business, engaging with loyal customers while also seeking out new, potential customers is a must. With the recent advancements of social media technology, these operations have increased the need for more developed methods to mesh consumer-business relationships and retention. The Handbook of Research on Retailing Techniques for Optimal Consumer Engagement and Experiences is a thought-provoking reference source that provides vital insight into the application of present-day customer relationship management within the retail industry. While highlighting topics such as digital communication, e-retailing, and social media marketing, this publication explores in-depth merchandiser knowledge as well as the methods behind positive retailer-consumer relationships. This book is ideally designed for managers, executives, CEOs, sales professionals, marketers, advertisers, brand managers, retail experts, academicians, researchers, and students.

In Consumer Behavior, the authors deliver a cutting-edge examination of consumer behavior, combining a thorough introduction to the subject with an overview of common and important consumer behaviors, contemporary social issues impacting consumer behavior including social media, a global mindset of consumer behaviors, and the ethical aspects of consumer behavior. The authors draw on extensive consumer behavior research and teaching experience to offer a streamlined pedagogical framework designed to provide a contemporary and fresh voice in the discipline. Consumer Behavior is ideal for undergraduates, graduate, MBAs, and executives seeking new insights to better understand consumers. In this edition, you'll find: An easy-to-follow introduction to and overview of consumer behavior The consumer buying process A throughgoing focus on global, ethical, and social media issues relevant to consumer behavior Supplementary materials for instructors, including PowerPoint slides and a Test Bank

Includes annual List of doctoral dissertations in political economy in progress in American universities and colleges.

Scientific knowledge and practical advice are combined in this book. Leading scientists present their latest research results in the area of product and price bundling, with respect to optimization as well as to behavioral bundling approaches. In addition the reader will learn how to implement bundling strategies and how to set up a bundling concept. He will find a thorough explanation of the value that bundling has for improving a company`s profit and sales.

Abstract: In order to understand how the market system provides information to buyers, the effect of information on consumer and market behavior is examined from the perspectives of economics, consumer psychology, and public policy. Economic analyses of information transmission and advertising are presented. Effects of different types of information on the behavior of firms, and information search strategies which consumers use to extract information from mass media advertisements are evaluated. Theories of information encoding and storage are described in terms of their implications for consumer research. The causes of information imperfections in local consumer markets (markets where different prices are charged for the same quality) are reviewed. Advertising regulation policy considerations are also examined. Consumer information systems for local services are discussed from the viewpoint of information needs and consumer patterns of information avoidance. (nm).