Bounded Rationality and Industrial Organization
- ISBN-10
- 0195398718
- ISBN-13
- 9780195398717
- Category
- Business & Economics
- Pages
- 235
- Language
- English
- Published
- 2011-02-18
- Publisher
- OUP USA
- Author
- Ran Spiegler
Description
Ît 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.
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