Competition for Attention

• 成果类型: Article
• 署名作者: Bordalo, Pedro; Gennaioli, Nicola; Shleifer, Andrei
• 署名单位: University of London; Royal Holloway University London; Bocconi University; Bocconi University; Harvard University
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdv048
• 发表日期: 2016
• 页码: 481-513
• 关键词: consumer choice; MODEL; SALIENCE; differentiation; strategy; QUALITY; MARKET

摘要

We present a model of market competition in which consumers' attention is drawn to the products' most salient attributes. Firms compete for consumer attention via their choices of quality and price. Strategic positioning of a product affects how all other products are perceived. With this attention externality, depending on the cost of producing quality some markets exhibit commoditized price salient equilibria, while others exhibit de-commoditized quality salient equilibria. When the costs of quality change, innovation can lead to radical shifts in markets, as in the case of decommoditization of the coffee market by Starbucks. In the context of financial innovation, the model generates the phenomenon of reaching for yield.