Bounded Rationality and Industrial Organization

Business & Finance, Economics, Microeconomics, Marketing & Sales, Consumer Behaviour, Human Resources & Personnel Management, Organizational Behavior
Cover of the book Bounded Rationality and Industrial Organization by Ran Spiegler, Oxford University Press
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Ran Spiegler ISBN: 9780199924233
Publisher: Oxford University Press Publication: February 18, 2011
Imprint: Oxford University Press Language: English
Author: Ran Spiegler
ISBN: 9780199924233
Publisher: Oxford University Press
Publication: February 18, 2011
Imprint: Oxford University Press
Language: English

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.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

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.

More books from Oxford University Press

Cover of the book Environmental Justice as Social Work Practice by Ran Spiegler
Cover of the book Hasan al-Banna: Oxford Bibliographies Online Research Guide by Ran Spiegler
Cover of the book Man's Emerging Mind by Ran Spiegler
Cover of the book The European and the Indian by Ran Spiegler
Cover of the book Sierra Leone by Ran Spiegler
Cover of the book Meaningful Work by Ran Spiegler
Cover of the book The Land Speaks by Ran Spiegler
Cover of the book Queen Anne by Ran Spiegler
Cover of the book The Nature of Suffering and the Goals of Medicine by Ran Spiegler
Cover of the book The Oxford Handbook of Adaptation Studies by Ran Spiegler
Cover of the book Handbook of Disability Sport and Exercise Psychology by Ran Spiegler
Cover of the book Climate Change and Society by Ran Spiegler
Cover of the book April Blood by Ran Spiegler
Cover of the book Pharmaceutical Freedom by Ran Spiegler
Cover of the book Ira Gershwin by Ran Spiegler
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy