Selling to Overconfident Consumers
Consumers may overestimate the precision of their demand forecasts. This overconfidence creates an incentive for both monopolists and competitive firms to offer tariffs with included quantities at zero marginal cost, followed by steep marginal charges. This matches observed cellular phone service pr...
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| Format: | Article |
| Language: | en_US |
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American Economic Association
2010
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| Online Access: | http://hdl.handle.net/1721.1/52652 |