Consumer reactions to unobserved changes in price schedules

0356765 - NHU-C 2011 RIV CZ eng V - Research Report
Katuščák, Peter
Consumer reactions to unobserved changes in price schedules.
Prague: CERGE-EI, 2011. 37 s. CERGE-EI Working Paper Series, 433. ISSN 1211-3298
R&D Projects: GA ČR(CZ) GA402/09/2048
Institutional research plan: CEZ:MSM0021620846
Keywords : price scheme * complexity * consumer decisions
Subject RIV: AH - Economics
http://www.cerge-ei.cz/pdf/wp/Wp433.pdf

Economic theory presumes that individuals respond to true marginal prices when deciding on the amount of goods and services they buy and many other economic decisions. This paper presents an experiment that studies repeated consumer purchase and price information updating and acquisition decisions when parameters of the price schedule are serially correlated but unknown. Subjects have an option to acquire the pricing information at a cost, or otherwise just update their beliefs based on the observation of the total cost of purchase.
Permanent Link: http://hdl.handle.net/11104/0195201