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Readership: Graduate and
advanced upper-level students of economics; economists interested in industrial organization, bounded rationality, decision theory and behavioral economics, as well as those interested in fair trade regulation and consumer protection; psychologists interested in consumer behavior.
Ran Spiegler, Department of Economics, University College London
Ran Spiegler is Professor of Economics at Tel Aviv University and University College London.
"Nobody thinks like Adam Smith when buying a toothbrush, but this is the assumption of consumer behavior offered in traditional economics textbooks. Marketing experts used to laugh at such naivety, but they will have to take economic theory more seriously from now on. Ran Spiegler's book takes on the challenge of rewriting the theory of industrial organization without the classical assumption that economic agents are all rational supermen. This is an important book that nobody working on industrial organization will wish to be without." - Ken Binmore, University College London
"Spiegler's Bounded Rationality and Industrial Organization is a beautifully written book. He makes a compelling case that understanding what happens when boundedly rational consumers meet sophisticated firms is both intellectually interesting and practically important. He has a wonderful feel for using rigorous models to clarify arguments and develops insights from a number of branches of the emerging literature in a parsimonious way. It is a must read book." - Glenn Ellison, Massachusetts Institute of Technology
I Anticipating Future Preferences
2: Dynamically Inconsistent Preferences I: Unconstrained Contracting
3: Dynamically Inconsistent Preferences II: Constrained Contracting
4: Dynamically Inconsistent Preferences III: Partial Naivety
5: Biased Beliefs without Dynamic Inconsistency
II Responding to Market Complexity
6: Sampling-Based Reasoning: Price Competition and Product Differentiation
7: Sampling-Based Reasoning: Obfuscation
8: Coarse Reasoning
III Reference Dependence
9: Loss Aversion
10: Inertia I: Price Competition
11: Inertia II: Costly Marketing 261
12: Recurring Themes
13: But Can't we Get the Same Thing with a Standard Model?