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on Marketing |
| By: | Johannes Stroebel (New York University) |
| Abstract: | Card Accountability Responsibility and Disclosure (CARD) Act in the United States. Using a unique panel data set covering over 150 million credit card accounts, we find that regulatory limits on credit card fees reduced overall borrowing costs to consumers by an annualized 2.8% of average daily balances, with a decline of more than 10% for consumers with the lowest FICO scores. Consistent with a model of low fee salience and limited market competition, we find no evidence of an offsetting increase in interest charges or a reduction in access to credit. Taken together, we estimate that the CARD Act fee reductions have saved U.S. consumers $20.8 billion per year. We also analyze the CARD Act requirement to disclose the interest savings from paying off balances in 36 months rather than only making minimum payments. We find that this “nudge†increased the number of account holders making the 36-month payment value by 0.5 percentage points, with a similarly sized decrease in the number of account holders paying less than this amount. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed014:126&r=mkt |
| By: | Yannai A. Gonczarowski; Moshe Tennenholtz |
| Abstract: | Can noncooperative behaviour of merchants lead to a market allocation that prima facie seems anticompetitive? We introduce a model in which service providers aim at optimizing the number of customers who use their services, while customers aim at choosing service providers with minimal customer load. Each service provider chooses between a variety of levels of service, and as long as it does not lose customers, aims at minimizing its level of service; the minimum level of service required to satisfy a customer varies across customers. We consider a two-stage competition, in the first stage of which the service providers select their levels of service, and in the second stage --- customers choose between the service providers. (We show via a novel construction that for any choice of strategies for the service providers, a unique distribution of the customers' mass between them emerges from all Nash equilibria among the customers, showing the incentives of service providers in the two-stage game to be well defined.) In the two-stage game, we show that the competition among the service providers possesses a unique Nash equilibrium, which is moreover super strong; we also show that all sequential better-response dynamics of service providers reach this equilibrium, with best-response dynamics doing so surprisingly fast. If service providers choose their levels of service according to this equilibrium, then the unique Nash equilibrium among customers in the second phase is essentially an allocation (i.e. split) of the market between the service providers, based on the customers' minimum acceptable quality of service; moreover, each service provider's chosen level of service is the lowest acceptable by the entirety of the market share allocated to it. Our results show that this seemingly-cooperative allocation of the market arises as the unique and highly-robust outcome of noncooperative (i.e. free from any form of collusion), even myopic, service-provider behaviour. The results of this paper are applicable to a variety of scenarios, such as the competition among ISPs, and shed a surprising light on aspects of location theory, such as the formation and structure of a city's central business district. |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:huj:dispap:dp663&r=mkt |
| By: | Xavier Irz (MTT Agrifood Research Finland); Pascal Leroy (Alimentation et Sciences Sociales, INRA); Vincent Requillart (Groupe de Recherche en Economie Mathématique et Quantitative, INRA); Louis Georges Soler (Alimentation et Sciences Sociales, INRA); Olivier Allais (Alimentation et Sciences Sociales, INRA) |
| Abstract: | Because food choices have important implications for human health and the environment, consumers are increasingly urged to modify their purchasing and eating habits so as to comply with a set of norms (e.g., eat at least five portions of fruits & vegetables a day; reduce meat consumption). However, the effect of compliance with those norms on the composition of the entire diet is uncertain because of potentially complex substitutions. To lift this uncertainty, we propose a model which extends the theory of the consumer under rationing to the case of multiple linear constraints. The effect on the diet of compliance with norms is derived from information on consumer preferences (price and expenditure elasticities of demand), consumption levels, and technical coefficients for each food (e.g., nutritional composition, GHG emissions). The model is then used to simulate how the French diet would respond to a five percent increase in fruit and vegetable consumption, as well as the related changes in diet quality and greenhouse gas emissions. |
| Keywords: | food choice, sustainability, rationing, sustainable diet, france |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:inr:wpaper:185106&r=mkt |
| By: | Gervaise Debucquet (Audencia Recherche - Audencia); Josiane Cornet (IFREMER Nantes - Institut Français de Recherche pour l'Exploitation de la Mer - Nantes - Université de Nantes); Isabelle Adam (IFREMER Nantes - Institut Français de Recherche pour l'Exploitation de la Mer - Nantes - Université de Nantes); Mireille Cardinal (IFREMER Nantes - Institut Français de Recherche pour l'Exploitation de la Mer - Nantes - Université de Nantes) |
| Abstract: | The search for new markets in the seafood sector, associated with the question of the continuity of raw oyster consumption over generations can be an opportunity for processors to extend their ranges with oyster-based products. The twofold aim of this study was to evaluate the impact of processing and social representation on perception of oyster-based products by French consumers and to identify the best means of development in order to avoid possible failure in the market. Five products with different degrees of processing (cooked oysters in a half-shell, hot preparation for toast, potted oyster, oyster butter and oyster-based soup) were presented within focus groups and consumer tests, at home and in canteens with the staff of several companies in order to reach consumers with different ages and professional activities. The results showed that social representation had a strong impact and that behaviours were contrasted according to the initial profile of the consumer (traditional raw oyster consumers or non-consumers) and their age distribution (younger and older people). The degree of processing has to be adapted to each segment. It is suggested to develop early exposure to influence the food choices and preferences of the youngest consumers on a long-term basis. |
| Keywords: | Oyster; Processing; Consumer perception; Disgust; Social representation |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00956940&r=mkt |