Using a representative sample of the German adult population, this paper investigates the extent to which a survey measure of present bias predicts present-biased choice behavior in incentive-compatible experiments and real-world outcomes related to in-vestments in financial assets and human capital. The results are threefold. First, the survey and experimental measures of present bias are significantly ...
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...
Retail electricity prices develop very differently depending on the provider and the tariff – Basic tariffs from default providers increased significantly between 2007 and 2014 while the most affordable tariffs offered in the market remained mostly constant – Providers passed the cost savings from falling wholesale prices on to households to varying degrees The average electricity prices ...
While financial inclusion is typically addressed by improving the financial infrastructure we show that financial literacy, representing the demand-side of financial markets, also has a beneficial effect. We study this effect at the cross-country level, which allows to consider institutional variation. Regarding “access to finance”, financial infrastructure and financial literacy are mainly substitutes. ...
The emergence of online platforms has decreased transaction costs considerably, increased price transparency and hence enabled consumers to more easily compare and purchase products and services. At the same time, platforms may achieve market power leading to undesirable market outcomes. Is existing consumer protection law appropriate to address concerns arising on online platforms? Are...
The sharing economy relies on online platforms to bring together providers and consumers of goods and services. How do platforms compete in these two-sided markets characterized by direct and indirect network effects? Which pricing strategies do these new online platforms adopt? How does rapid innovation ubiquitous in these markets affect competition between platforms? How do new digital...
Gerd Billen, State Secretary to the Federal Minister of Justice and Consumer Protection, received the BCCP Distinguished Policy Fellow Award. The fellowship was awarded by Gerhard Wagner, Professor of Law, Humboldt University Berlin.
Digital markets are characterized by consumer targeting and customization of products and services. Firms such as Amazon or Google use algorithms to increase their product quality, such as search results or the targeting of advertising. These algorithms rely on past consumer search and browsing behavior to learn and improve results in real-time. This session discusses the extent to which the use...