Consumer Choice, Imperfect Information, and Public Policy PDF Download

Author: Victor P. Goldberg
Publisher:
ISBN:
Category : Consumer education
Languages : en
Pages : 58

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Author: Howard Beales
Publisher:
ISBN:
Category : Consumer education
Languages : en
Pages : 34

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Author: William J. Congdon
Publisher: Brookings Institution Press
ISBN: 0815704984
Category : Business & Economics
Languages : en
Pages : 260

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Book Description
Argues that public finance--the study of the government's role in economics--should incorporate principles from behavior economics and other branches of psychology.

Author: William L. Wilkie
Publisher:
ISBN:
Category : Consumer protection
Languages : en
Pages : 90

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Author: Ran Kivetz
Publisher:
ISBN:
Category : Consumers' preferences
Languages : en
Pages : 57

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Author: University of California, Davis. Institute of Governmental Affairs
Publisher:
ISBN:
Category : California
Languages : en
Pages : 58

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Author: Frank Hüttner
Publisher:
ISBN:
Category :
Languages : de
Pages :

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Consumers often do not have complete information about the choices they face and therefore have to spend time and effort in acquiring information. Since information acquisition is costly, consumers have to trade-off the value of better information against its cost, and make their final choices based on imperfect information. We model this decision using the rational inattention approach and describe the rationally inattentive consumer's choice behavior when she faces options with different information costs. To this end, we introduce an information cost function that distinguishes between direct and inferential information. We then analytically characterize the optimal behavior and derive the choice probabilities in closed-form. We find that non-uniform information costs can have a strong impact on product choice, which gets particularly conspicuous when the product alternatives are otherwise very similar. It can also lead to situations where it is disadvantageous for the seller to provide easier access to information for a particular product. Furthermore, it provides a new explanation for strong failure of regularity of consumer behaviour, which occurs if the addition of an inferior - never chosen - product to the choice set increases the market share of another existing product.

Author: Steven A. Greenlaw
Publisher:
ISBN: 9781947172432
Category : Business & Economics
Languages : en
Pages : 0

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Book Description
Principles of Macroeconomics for AP® Courses 2e covers the scope and sequence requirements for an Advanced Placement® macroeconomics course and is listed on the College Board's AP® example textbook list. The second edition includes many current examples and recent data from FRED (Federal Reserve Economic Data), which are presented in a politically equitable way. The outcome is a balanced approach to the theory and application of economics concepts. The second edition was developed with significant feedback from current users. In nearly all chapters, it follows the same basic structure of the first edition. General descriptions of the edits are provided in the preface, and a chapter-by-chapter transition guide is available for instructors.

Author: Frank Huettner
Publisher:
ISBN:
Category :
Languages : en
Pages : 52

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Book Description
Consumers often do not have complete information about the choices they face and therefore have to spend time and effort in acquiring information. Since information acquisition is costly, consumers trade-off the value of better information against its cost, and make their final product choices based on imperfect information. We model this decision using the rational inattention approach and describe the rationally inattentive consumer's choice behavior when she faces alternatives with different information costs. To this end, we introduce an information cost function that distinguishes between direct and implied information. We then analytically characterize the optimal choice probabilities. We find that non-uniform information costs can have a strong impact on product choice, which gets particularly conspicuous when the product alternatives are otherwise very similar. There are significant implications on how a seller should provide information about its products and how changes to the product set impacts consumer choice. For example, non-uniform information costs can lead to situations where it is disadvantageous for the seller to provide easier access to information for a particular product, and to situations where the addition of an inferior (never chosen) product increases the market share of another existing product (i.e., failure of regularity). We also provide an algorithm to compute the optimal choice probabilities and discuss how our framework can be empirically estimated from suitable choice data.

Author: Alfred H. Moses
Publisher: Brookings Institution Press
ISBN: 0815732732
Category : Political Science
Languages : en
Pages : 438

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Book Description
An insider's account of Romania's emergence from communism control In the 1970s American attorney Alfred H. Moses was approached on the streets of Bucharest by young Jews seeking help to emigrate to Israel. This became the author's mission until the communist regime fell in 1989. Before that Moses had met periodically with Romania's communist dictator, Nicolae Ceausescu, to persuade him to allow increased Jewish emigration. This experience deepened Moses's interest in Romania—an interest that culminated in his serving as U.S. ambassador to the country from 1994 to 1997 during the Clinton administration. The ambassador's time of service in Romania came just a few years after the fall of the Berlin Wall and the subsequent collapse of communism in Eastern Europe. During this period Romania faced economic paralysis and was still buried in the rubble of communism. Over the next three years Moses helped nurture Romania's nascent democratic institutions, promoted privatization of Romania's economy, and shepherded Romania on the path toward full integration with Western institutions. Through frequent press conferences, speeches, and writings in the Romanian and Western press and in his meetings with Romanian officials at the highest level, he stated in plain language the steps Romania needed to take before it could be accepted in the West as a free and democratic country. Bucharest Diary: An American Ambassador's Journey is filled with firsthand stories, including colorful anecdotes, of the diplomacy, both public and private, that helped Romania recover from four decades of communist rule and, eventually, become a member of both NATO and the European Union. Romania still struggles today with the consequences of its history, but it has reached many of its post-communist goals, which Ambassador Moses championed at a crucial time. This book will be of special interest to readers of history and public affairs—in particular those interested in Jewish life under communist rule in Eastern Europe and how the United States and its Western partners helped rebuild an important country devastated by communism.