What Is This Thing Called Microfoundations?
In: History of political economy, Volume 23, Issue 4, p. 687-712
ISSN: 1527-1919
10 results
Sort by:
In: History of political economy, Volume 23, Issue 4, p. 687-712
ISSN: 1527-1919
In: The Rand journal of economics
ISSN: 1756-2171
AbstractWe show that in search markets an influencer who recommends a product to her followers improves consumer surplus and total welfare despite the firm paying for her recommendation. As consumers learn their value for the product upon search, they will not buy at the recommended firm if they learn their value is low. The threat of search incentivizes firms to offer the influencer a financial contract involving a commission and incentivizes the influencer to be honest in her recommendation. Provided the influencer's search cost is not too high, she also has an incentive to acquire information and give informative recommendations. These informative equilibria are more difficult to sustain if influencers compete with each other.
In: Public choice, Volume 172, Issue 3-4, p. 501-524
ISSN: 1573-7101
In: The economic journal: the journal of the Royal Economic Society, Volume 120, Issue 549, p. 1319-1344
ISSN: 1468-0297
In: The Economic Journal, Volume 105, Issue 431, p. 1032
In: The Economic Journal, Volume 104, Issue 425, p. 946
In: Groningen theses in economics, management & organization
In: Higher School of Economics Research Paper No. 51/EC/2014
SSRN
Working paper
In: Journal of institutional and theoretical economics: JITE, Volume 166, Issue 2, p. 286
ISSN: 1614-0559