Project

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Imperfect Competition and Social Preferences

Applicant Halbheer Daniel
Number 129097
Funding scheme Fellowships for advanced researchers
Research institution
Institution of higher education Institution abroad - IACH
Main discipline Economics
Start/End 01.02.2010 - 31.01.2011
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All Disciplines (2)

Discipline
Economics
Science of management

Keywords (6)

Imperfect competition; Social preferences; Conformity; Exclusivity; Advertising; Product Quality

Lay Summary (English)

Lead
Lay summary
This project studies the role of consumers' social preferences for imperfect competition. More specifically, the project explores a new field of research which focuses on the impact of social preferences on the interaction of firms and consumers in product markets.

The proposed project builds upon three distinct strands of literature. These strands have focused on social preferences, their implications for product pricing, and strategic advertising. While recent work on product pricing has started to account for social preferences, the advertising literature has essentially abstracted from this phenomenon. As a result, the overall interaction of firms and consumers with social preferences under imperfect competition is not very well understood.

This research project attempts to shed light on this by developing theoretical models which provide new insights into the interplay between advertising, pricing, and social preferences under imperfect competition. In particular, the project will investigate the impact of social preferences on advertising, product pricing, and the intensity of product market competition. In addition, it will derive empirically testable theoretical predictions.



Direct link to Lay Summary Last update: 21.02.2013

Responsible applicant and co-applicants

Abstract

This project studies the role of consumers' social preferences for imperfect competition. More specifically, the project explores a new field of research which focuses on the impact of social preferences on the interaction of firms and consumers in product markets.The proposed project builds upon three distinct strands of literature. These strands have focused on social preferences, their implications for product pricing, and strategic advertising. While recent work on product pricing has started to account for social preferences, the advertising literature has essentially abstracted from this phenomenon. As a result, the overall interaction of firms and consumers with social preferences under imperfect competition is not very well understood.This research project attempts to shed light on this by developing theoretical models which provide new insights into the interplay between advertising, pricing, and social preferences under imperfect competition. In particular, the project will investigate the impact of social preferences on (i) advertising, (ii) product pricing, and (iii) the intensity of product market competition. In addition, it will derive empirically testable theoretical predictions.The project draws upon and extends previous work with various co-authors. Its results are expected to be presented at international academic conferences and to be published in top-level peer-reviewed journals.
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