Topic Consumers

All-Pay Competition with Captive Consumers

We study a game in which two firms compete in quality to serve a market consisting of consumers with different initial consideration sets. If both firms invest below a certain quality threshold, they only compete for those consumers already aware of their existence. Above this threshold, a firm is visible to all and the highest quality attracts all consumers. In equilibrium, firms do not choose their ...

Drivers of Renewable Technology Adoption in the Household Sector

Using data from the German Socio-Economic Panel, we undertake a simultaneous assessment of the importance of factors that are individually found to be significant for the adoption of renewable energy systems by households but are not yet tested jointly. These are sociodemographic and housing characteristics, environmental concern, personality traits, and economic factors; i.e. the expected costs of ...

The Effect of Peer Observation on Consumption Choices: Evidence from a Lab-In-Field Experiment

We investigate the impact of peer observation on consumption decisions using a lab-in-field experiment. Respondents make consumption decisions either alone or under peer observation. We find evidence for peer effects. We are able to study these further by looking into the mechanism and performing detailed heterogeneity analysis. Concerning the mechanisms, we find evidence for an information channel. ...

The Effect of a Leniency Rule on Cartel Formation and Stability: Experiments with Open Communication

Cartels can severely harm social welfare. Competition authorities introduced leniency rules to destabilize existing cartels and hinder the formation of new ones. Empirically, it is difficult to judge the success of these measures because functioning cartels are unobservable. Existing experimental studies confirm that a leniency rule indeed reduces cartelization. We extend these studies by having a ...

Social sustainability labels: promises and reality in the example of Fairtrade-coffee

By Pio Baake, Jana Friedrichsen, and Helene Naegele Fairtrade certification is intended to improve both the income and living conditions of producers, thereby creating more fairness in international trade. However, theoretical considerations and empirical studies show that this goal is only achieved to a limited extent, at least for coffee: Faitrade certification leads at best to small increases in ...

Airbnb and Rental Prices: Evidence from Berlin

Retrospective evaluation support study: the Guidelines on Regional State Aid for 2014-2020

In January 2019, the European Commission (“Commission”) launched the evaluation of its State aid rules that were adopted as part of the State aid Modernisation. The evaluation aims to verify if the rules delivered the desired results to European citizens and businesses at a minimum cost and if they are still fit for purpose. Within this process, the Commission entrusted a consortium of...

The 10th Berlin IO Day

The Berlin IO Day is a one-day workshop sponsored by the Berlin Centre for Consumer Policies (BCCP) and supported by the Berlin's leading academic institutions, including DIW Berlin, ESMT Berlin, Humboldt-Universität zu Berlin, Technische Universität Berlin, and WZB which takes place twice a year, in the Fall and in the Spring. The aim is to create an international forum for high quality...

BCCP Conference and Policy Forum 2018

The tremendous growth of digital transactions has profoundly affected the way we interact, opening vast opportunities to improve our lives. Consumers have benefited from an unprecedented proliferation of new services and products. At the same time, consumers often must process large amounts of imperfect information regarding the products they purchase and services they use. Even more, for many...

Consumers' Costly Responses to Product-Harm Crises

BAMS is a joint seminar by the DIW Berlin, the Hertie School of Governance, the HU Berlin and the WZB.