Adrian, Nana C. (June 2018). Price Discrimination and Salience-Driven Consumer Preferences (Discussion Papers 19-06). Bern: Department of Economics
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This paper generalizes the price discrimination framework of Mussa and Rosen (1978) by considering salience-driven consumer preferences in the sense of Bordalo et al. (2013b). Consumers with salience-driven preferences give a higher weight to attributes that vary more. This reduces the monopolist’s propensity to treat different types of consumers differently. The paper’s main result characterizes the conditions under which the monopolist induces consumers to focus on price rather than on quality.
Item Type: |
Working Paper |
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Division/Institute: |
03 Faculty of Business, Economics and Social Sciences > Department of Economics |
UniBE Contributor: |
Adrian, Nana Christina |
Subjects: |
300 Social sciences, sociology & anthropology > 330 Economics |
Series: |
Discussion Papers |
Publisher: |
Department of Economics |
Language: |
English |
Submitter: |
Lars Tschannen |
Date Deposited: |
02 Sep 2020 14:44 |
Last Modified: |
05 Dec 2022 15:40 |
JEL Classification: |
D11, D42, D91, L11 |
BORIS DOI: |
10.7892/boris.145892 |
URI: |
https://boris.unibe.ch/id/eprint/145892 |
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