12 research outputs found
Social awareness and price competition
Human actions are often guided both by individual rationality and by social norms. In this
paper we explore how market competition values the variants of a product, when these variants
embody at different levels the requirements derived from some social norm. In a model where
preferences of consumers depend partially on the levels of compliance of the variants with the
social norm, we characterize the equilibrium path along which firms choose sequentially their
level of compliance and their price