Competitive framing

Research output: Contribution to journalArticlepeer-review

Abstract

I present a simple framework for modeling two-firm market competition when consumer choice is "frame-dependent," and firms use costless "marketing messages" to influence the consumers frame. This framework embeds several recent models in the "behavioral industrial organization" literature. I identify a property that consumer choice may satisfy, which extends the concept of Weighted Regularity due to Piccione and Spiegler (2012), and provide a characterization of Nash equilibria under this property. I use this result to analyze the equilibrium interplay between competition and framing in a variety of applications.

Original languageEnglish
Pages (from-to)35-58
Number of pages24
JournalAmerican Economic Journal: Microeconomics
Volume6
Issue number3
DOIs
StatePublished - 2014

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