Gain or Pain: Does Consumer Activity Reflect Utility Maximisation?

Waddams Price, Catherine and Chang, Yoonhee Tina (2008) Gain or Pain: Does Consumer Activity Reflect Utility Maximisation? Working Paper. Centre for Competition Policy.

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    Abstract

    Competition Authorities are introducing new informational remedies to help consumers search and switch more actively. Using a specially commissioned data set, and unique direct estimates of the gains, search and switching time which consumers anticipate, we examine the determinants of consumer activity in eight markets. We find that expected costs (and to some extent gains) do influence consumers as a utility maximising model would predict; but that their role is small, and other factors, particularly experience of switching in other markets, are also influential. We conclude that consumers’ confidence in their own estimates is crucial in encouraging market activity.

    Item Type: Monograph (Working Paper)
    Faculty \ School: Faculty of Social Sciences > Norwich Business School
    Depositing User: Catherine Waddams
    Date Deposited: 08 Apr 2011 09:59
    Last Modified: 07 Jan 2019 00:53
    URI: https://ueaeprints.uea.ac.uk/id/eprint/28506
    DOI:

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