Does product complexity matter for competition in experimental retail markets?

Sitzia, Stefania and Zizzo, Daniel (2011) Does product complexity matter for competition in experimental retail markets? Theory and Decision, 70. pp. 65-82.

Full text not available from this repository. (Request a copy)

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.

Item Type:	Article
Faculty \ School:	Faculty of Social Sciences > School of Economics
UEA Research Groups:	Faculty of Social Sciences > Research Centres > Centre for Behavioural and Experimental Social Sciences Faculty of Social Sciences > Research Groups > Behavioural Economics Faculty of Social Sciences > Research Groups > Environment, Resources and Conflict
Depositing User:	Gina Neff
Date Deposited:	29 Mar 2011 09:54
Last Modified:	11 Aug 2023 16:30
URI:	https://ueaeprints.uea.ac.uk/id/eprint/27373
DOI:	10.1007/s11238-009-9163-1

Actions (login required)

View Item