Consumer Misperception in a Hotelling Model: With and Without Price Discrimination

This paper studies the implications of consumer misperception in a market for a (horizontally) differentiated product. Two distinct types of misperceptions are considered: (i) a common misperception that leads consumers to similarly overestimate the benefit from both firms' products; and (ii) a...

Full description

Saved in:
Bibliographic Details
Published in:Journal of institutional and theoretical economics 2020-01, Vol.176 (1), p.180-203
Main Author: Bar-Gill, Oren
Format: Article
Language:English
Subjects:
Advertising
Alliances
Consumers
Defective products
Discrimination
Efficiency
Prices
Product differentiation
Profits
Social welfare
Citations: Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
cited_by cdi_FETCH-LOGICAL-c333t-2ce9553364ee490e00f0fa6b9079e2b7714800430cc905446f2bcd37a68744e13
cites
container_end_page 203
container_issue 1
container_start_page 180
container_title Journal of institutional and theoretical economics
container_volume 176
creator Bar-Gill, Oren
description This paper studies the implications of consumer misperception in a market for a (horizontally) differentiated product. Two distinct types of misperceptions are considered: (i) a common misperception that leads consumers to similarly overestimate the benefit from both firms' products; and (ii) a relative misperception that leads consumers to overestimate the benefit of one firm's product relative to the product offered by its competitor. The paper analyzes the implications of misperception for social welfare and consumer surplus. In particular, the effects of price discrimination are considered for each type of misperception.
doi_str_mv 10.1628/jite-2020-0021
format article
fullrecord <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_journals_2400575389</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sourcerecordid>2400575389</sourcerecordid><originalsourceid>FETCH-LOGICAL-c333t-2ce9553364ee490e00f0fa6b9079e2b7714800430cc905446f2bcd37a68744e13</originalsourceid><addsrcrecordid>eNotkD1PwzAQhi0EEqWwMltiTjl_JmZD5aNIrUAIxGi57gVcpXGwk4F_T0OZ7obnfe_0EHLJYMY0r663oceCA4cCgLMjMmGayQKUMsdkAkbwQiptTslZzlsAIaSCCXmdxzYPO0x0FXKHyWPXh9jS0FJHF7HHpgntJ13FDTY39CP0X9S1m78lDj19ScEjvQvZp7ALrRuz5-Skdk3Gi_85Je8P92_zRbF8fnya3y4LL4ToC-7RKCWElojSAALUUDu9NlAa5OuyZLICkAK8N6Ck1DVf-40ona5KKZGJKbk69HYpfg-Ye7uNQ2r3Jy2XAKpUojJ7anagfIo5J6xtt3_VpR_LwI7e7OjNjt7s6E38Ai3nX-o</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>2400575389</pqid></control><display><type>article</type><title>Consumer Misperception in a Hotelling Model: With and Without Price Discrimination</title><source>International Bibliography of the Social Sciences (IBSS)</source><source>Social Science Premium Collection</source><source>ABI/INFORM Global</source><source>Politics Collection</source><creator>Bar-Gill, Oren</creator><creatorcontrib>Bar-Gill, Oren</creatorcontrib><description>This paper studies the implications of consumer misperception in a market for a (horizontally) differentiated product. Two distinct types of misperceptions are considered: (i) a common misperception that leads consumers to similarly overestimate the benefit from both firms' products; and (ii) a relative misperception that leads consumers to overestimate the benefit of one firm's product relative to the product offered by its competitor. The paper analyzes the implications of misperception for social welfare and consumer surplus. In particular, the effects of price discrimination are considered for each type of misperception.</description><identifier>ISSN: 0932-4569</identifier><identifier>EISSN: 1614-0559</identifier><identifier>DOI: 10.1628/jite-2020-0021</identifier><language>eng</language><publisher>Tübingen: Mohr Siebeck</publisher><subject>Advertising ; Alliances ; Consumers ; Defective products ; Discrimination ; Efficiency ; Prices ; Product differentiation ; Profits ; Social welfare</subject><ispartof>Journal of institutional and theoretical economics, 2020-01, Vol.176 (1), p.180-203</ispartof><rights>Copyright Mohr Siebeck Mar 2020</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c333t-2ce9553364ee490e00f0fa6b9079e2b7714800430cc905446f2bcd37a68744e13</citedby></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.proquest.com/docview/2400575389/fulltextPDF?pq-origsite=primo$$EPDF$$P50$$Gproquest$$H</linktopdf><linktohtml>$$Uhttps://www.proquest.com/docview/2400575389?pq-origsite=primo$$EHTML$$P50$$Gproquest$$H</linktohtml><link.rule.ids>314,776,780,11667,12826,21366,21373,27901,27902,33200,33588,33962,36037,43709,43924,44339,73964,74211,74638</link.rule.ids></links><search><creatorcontrib>Bar-Gill, Oren</creatorcontrib><title>Consumer Misperception in a Hotelling Model: With and Without Price Discrimination</title><title>Journal of institutional and theoretical economics</title><description>This paper studies the implications of consumer misperception in a market for a (horizontally) differentiated product. Two distinct types of misperceptions are considered: (i) a common misperception that leads consumers to similarly overestimate the benefit from both firms' products; and (ii) a relative misperception that leads consumers to overestimate the benefit of one firm's product relative to the product offered by its competitor. The paper analyzes the implications of misperception for social welfare and consumer surplus. In particular, the effects of price discrimination are considered for each type of misperception.</description><subject>Advertising</subject><subject>Alliances</subject><subject>Consumers</subject><subject>Defective products</subject><subject>Discrimination</subject><subject>Efficiency</subject><subject>Prices</subject><subject>Product differentiation</subject><subject>Profits</subject><subject>Social welfare</subject><issn>0932-4569</issn><issn>1614-0559</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2020</creationdate><recordtype>article</recordtype><sourceid>8BJ</sourceid><sourceid>ALSLI</sourceid><sourceid>DPSOV</sourceid><sourceid>M0C</sourceid><sourceid>M2L</sourceid><recordid>eNotkD1PwzAQhi0EEqWwMltiTjl_JmZD5aNIrUAIxGi57gVcpXGwk4F_T0OZ7obnfe_0EHLJYMY0r663oceCA4cCgLMjMmGayQKUMsdkAkbwQiptTslZzlsAIaSCCXmdxzYPO0x0FXKHyWPXh9jS0FJHF7HHpgntJ13FDTY39CP0X9S1m78lDj19ScEjvQvZp7ALrRuz5-Skdk3Gi_85Je8P92_zRbF8fnya3y4LL4ToC-7RKCWElojSAALUUDu9NlAa5OuyZLICkAK8N6Ck1DVf-40ona5KKZGJKbk69HYpfg-Ye7uNQ2r3Jy2XAKpUojJ7anagfIo5J6xtt3_VpR_LwI7e7OjNjt7s6E38Ai3nX-o</recordid><startdate>20200101</startdate><enddate>20200101</enddate><creator>Bar-Gill, Oren</creator><general>Mohr Siebeck</general><scope>AAYXX</scope><scope>CITATION</scope><scope>0-V</scope><scope>0U~</scope><scope>1-H</scope><scope>3V.</scope><scope>7WY</scope><scope>7WZ</scope><scope>7XB</scope><scope>87Z</scope><scope>8BF</scope><scope>8BJ</scope><scope>8FK</scope><scope>8FL</scope><scope>8G5</scope><scope>ABUWG</scope><scope>AFKRA</scope><scope>ALSLI</scope><scope>AXJJW</scope><scope>AZQEC</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>BFMQW</scope><scope>CCPQU</scope><scope>DPSOV</scope><scope>DWQXO</scope><scope>FQK</scope><scope>FREBS</scope><scope>FRNLG</scope><scope>F~G</scope><scope>GNUQQ</scope><scope>GUQSH</scope><scope>JBE</scope><scope>K60</scope><scope>K6~</scope><scope>KC-</scope><scope>L.-</scope><scope>L.0</scope><scope>M0C</scope><scope>M0Q</scope><scope>M2L</scope><scope>M2O</scope><scope>MBDVC</scope><scope>PADUT</scope><scope>PQBIZ</scope><scope>PQBZA</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>PYYUZ</scope><scope>Q9U</scope></search><sort><creationdate>20200101</creationdate><title>Consumer Misperception in a Hotelling Model: With and Without Price Discrimination</title><author>Bar-Gill, Oren</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c333t-2ce9553364ee490e00f0fa6b9079e2b7714800430cc905446f2bcd37a68744e13</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2020</creationdate><topic>Advertising</topic><topic>Alliances</topic><topic>Consumers</topic><topic>Defective products</topic><topic>Discrimination</topic><topic>Efficiency</topic><topic>Prices</topic><topic>Product differentiation</topic><topic>Profits</topic><topic>Social welfare</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Bar-Gill, Oren</creatorcontrib><collection>CrossRef</collection><collection>ProQuest Social Sciences Premium Collection【Remote access available】</collection><collection>Global News &amp; ABI/Inform Professional</collection><collection>Trade PRO</collection><collection>ProQuest Central (Corporate)</collection><collection>ABI/INFORM Collection</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection</collection><collection>European Business Database (Alumni Edition)</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>ProQuest Central (Alumni) (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection (Alumni Edition)</collection><collection>Research Library (Alumni Edition)</collection><collection>ProQuest Central (Alumni)</collection><collection>ProQuest Central</collection><collection>Social Science Premium Collection</collection><collection>Asian &amp; European Business Collection</collection><collection>ProQuest Central Essentials</collection><collection>ProQuest Central</collection><collection>Business Premium Collection</collection><collection>Continental Europe Database</collection><collection>ProQuest One Community College</collection><collection>Politics Collection</collection><collection>ProQuest Central</collection><collection>International Bibliography of the Social Sciences</collection><collection>Asian &amp; European Business Collection (Alumni)</collection><collection>Business Premium Collection (Alumni)</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>ProQuest Central Student</collection><collection>Research Library Prep</collection><collection>International Bibliography of the Social Sciences</collection><collection>ProQuest Business Collection (Alumni Edition)</collection><collection>ProQuest Business Collection</collection><collection>ProQuest Politics Collection</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ABI/INFORM Professional Standard</collection><collection>ABI/INFORM Global</collection><collection>European Business Database</collection><collection>Political Science Database</collection><collection>Research Library</collection><collection>Research Library (Corporate)</collection><collection>Research Library China</collection><collection>ProQuest One Business</collection><collection>ProQuest One Business (Alumni)</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ABI/INFORM Collection China</collection><collection>ProQuest Central Basic</collection><jtitle>Journal of institutional and theoretical economics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Bar-Gill, Oren</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Consumer Misperception in a Hotelling Model: With and Without Price Discrimination</atitle><jtitle>Journal of institutional and theoretical economics</jtitle><date>2020-01-01</date><risdate>2020</risdate><volume>176</volume><issue>1</issue><spage>180</spage><epage>203</epage><pages>180-203</pages><issn>0932-4569</issn><eissn>1614-0559</eissn><abstract>This paper studies the implications of consumer misperception in a market for a (horizontally) differentiated product. Two distinct types of misperceptions are considered: (i) a common misperception that leads consumers to similarly overestimate the benefit from both firms' products; and (ii) a relative misperception that leads consumers to overestimate the benefit of one firm's product relative to the product offered by its competitor. The paper analyzes the implications of misperception for social welfare and consumer surplus. In particular, the effects of price discrimination are considered for each type of misperception.</abstract><cop>Tübingen</cop><pub>Mohr Siebeck</pub><doi>10.1628/jite-2020-0021</doi><tpages>24</tpages></addata></record>
fulltext fulltext
identifier ISSN: 0932-4569
ispartof Journal of institutional and theoretical economics, 2020-01, Vol.176 (1), p.180-203
issn 0932-4569
1614-0559
language eng
recordid cdi_proquest_journals_2400575389
source International Bibliography of the Social Sciences (IBSS); Social Science Premium Collection; ABI/INFORM Global; Politics Collection
subjects Advertising
Alliances
Consumers
Defective products
Discrimination
Efficiency
Prices
Product differentiation
Profits
Social welfare
title Consumer Misperception in a Hotelling Model: With and Without Price Discrimination
url http://sfxeu10.hosted.exlibrisgroup.com/loughborough?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-30T15%3A51%3A43IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Consumer%20Misperception%20in%20a%20Hotelling%20Model:%20With%20and%20Without%20Price%20Discrimination&rft.jtitle=Journal%20of%20institutional%20and%20theoretical%20economics&rft.au=Bar-Gill,%20Oren&rft.date=2020-01-01&rft.volume=176&rft.issue=1&rft.spage=180&rft.epage=203&rft.pages=180-203&rft.issn=0932-4569&rft.eissn=1614-0559&rft_id=info:doi/10.1628/jite-2020-0021&rft_dat=%3Cproquest_cross%3E2400575389%3C/proquest_cross%3E%3Cgrp_id%3Ecdi_FETCH-LOGICAL-c333t-2ce9553364ee490e00f0fa6b9079e2b7714800430cc905446f2bcd37a68744e13%3C/grp_id%3E%3Coa%3E%3C/oa%3E%3Curl%3E%3C/url%3E&rft_id=info:oai/&rft_pqid=2400575389&rft_id=info:pmid/&rfr_iscdi=true