Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/264887 
Autor:innen: 
Erscheinungsjahr: 
2022
Schriftenreihe/Nr.: 
BERG Working Paper Series No. 184
Verlag: 
Bamberg University, Bamberg Economic Research Group (BERG), Bamberg
Zusammenfassung: 
I analyze the implication of consumers' limited attention to quality differences on market outcomes and welfare. I model this limited attention to quality differences with a perception threshold: Consumers only perceive quality differences between goods that exceed the consumers' perception threshold. The model allows for two types of equilibria: equilibria with distinguishable and equilibria with indistinguishable qualities. I show that horizontal product differentiation, which gives firms market power, affects equilibrium selection. If firms are horizontally differentiated, firms produce goods with indistinguishable qualities. Then, limited attention harms consumers and benefits firms. In contrast, if firms are not horizontally differentiated, firms produce goods with distinguishable qualities. Then, limited attention has no effect on consumers' welfare or firms' profits.
Schlagwörter: 
Limited Attention
Perception Threshold
Product Differentiation
Product Quality
JEL: 
D43
D91
L13
ISBN: 
978-3-949224-05-8
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
710.39 kB





Publikationen in EconStor sind urheberrechtlich geschützt.