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.
![]()
|
Microsoft Word (1.104668!ccp08-15.pdf)
Download (263kB) | Preview |
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 08:59 |
Last Modified: | 05 Apr 2021 01:37 |
URI: | https://ueaeprints.uea.ac.uk/id/eprint/28506 |
DOI: |
Actions (login required)
![]() |
View Item |