@article{3b4c101471a04df2a4c65029191b3bfa,
title = "Consideration sets and competitive marketing",
abstract = "We study a market model in which competing firms use costly marketing devices to influence the set of alternatives which consumers perceive as relevant. Consumers in our model are boundedly rational in the sense that they have an imperfect perception of what is relevant to their decision problem. They apply well-defined preferences to a {"}consideration set{"}, which is a function of the marketing devices employed by the firms. We examine the implications of this behavioural model in the context of a competitive market model, particularly on industry profits, vertical product differentiation, the use of marketing devices, and consumers' conversion rates.",
keywords = "Advertising, Bounded rationality, Consideration sets, Limited attention, Marketing, Persuasion, Product display",
author = "Kfir Eliaz and Ran Spiegler",
note = "Funding Information: Acknowledgment. This is a substantially revised version of a working paper that appeared under the same title in 2006. We thank Amitav Chakravarti, Eddie Dekel, Dino Gerardi, Sergiu Hart, Barton Lipman, John Lynch, Martin Peitz, Ariel Rubinstein, numerous seminar participants, as well as the editor and referees of this journal, for helpful comments. Spiegler acknowledges financial support from the Israel Science Foundation, grant no. 0610114022, the European Research Council, grant no. 230251, as well as from the Economic and Social Research Council (UK).",
year = "2011",
month = jan,
day = "1",
doi = "10.1093/restud/rdq016",
language = "אנגלית",
volume = "78",
pages = "235--262",
journal = "Review of Economic Studies",
issn = "0034-6527",
publisher = "Oxford University Press",
number = "1",
}