Theory and Decision 70 (1):65-82 (2011)

Abstract
We describe a first experiment on whether product complexity affects competition and consumers in retail markets. We are unable to detect a significant effect of product complexity on prices, except insofar as the demand elasticity for complex products is higher. However, there is qualified evidence that complex products have the potential to induce consumers to buy more than they would otherwise. In this sense, consumer exploitability in quantities cannot be ruled out. We also find evidence for shaping effects: consumers’ preferences are shaped by past experience with prices, and firms may in principle exploit this to sell more
Keywords Consumer market  Product complexity  Complexity aversion  Complexity exploitation  Bounded rationality
Categories (categorize this paper)
Reprint years 2011
DOI 10.1007/s11238-009-9163-1
Options
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

Our Archive


Upload a copy of this paper     Check publisher's policy     Papers currently archived: 50,488
External links

Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library

References found in this work BETA

Add more references

Citations of this work BETA

Add more citations

Similar books and articles

Complexity Theoretic Bounded Rationality and Satisficing.K. V. Velupillai - 2010 - In Marisa Faggini, Concetto Paolo Vinci, Antonio Abatemarco, Rossella Aiello, F. T. Arecchi, Lucio Biggiero, Giovanna Bimonte, Sergio Bruno, Carl Chiarella, Maria Pia Di Gregorio, Giacomo Di Tollo, Simone Giansante, Jaime Gil Aluja, A. I͡U Khrennikov, Marianna Lyra, Riccardo Meucci, Guglielmo Monaco, Giancarlo Nota, Serena Sordi, Pietro Terna, Kumaraswamy Velupillai & Alessandro Vercelli (eds.), Decision Theory and Choices: A Complexity Approach. Springer Verlag Italia.

Analytics

Added to PP index
2013-12-01

Total views
80 ( #114,689 of 2,326,559 )

Recent downloads (6 months)
17 ( #36,256 of 2,326,559 )

How can I increase my downloads?

Downloads

My notes