Information and Consumer Behavior

  title={Information and Consumer Behavior},
  author={Phillip J. Nelson},
  journal={Journal of Political Economy},
  pages={311 - 329}
  • P. Nelson
  • Published 1 March 1970
  • Business, Economics
  • Journal of Political Economy
Consumers are continually making choices among products, the consequences of which they are but dimly aware. Not only do consumers lack full information about the prices of goods, but their information is probably even poorer about the quality variation of products simply because the latter information is more difficult to obtain. One can, for example, readily determine the price of a television set; it is more difficult to determine its performance characteristics under various conditions or… 

Competing with Experience Goods

In several markets consumers can only gain further information regarding about how well a product fits their preferences by experiencing it after the purchase. Furthermore, while some consumers may

The Noisy Monopolist: Imperfect Information, Price Dispersion and Price Discrimination

Although economists often assume that commodities form homogeneous categories with a single price, there are in fact heterogeneities within commodity groupings. Many markets for apparently identical

Consumer Information and the Pricing of Legal Services

In a classic article on the economics of information, George Stigler discussed the impact advertising could have on the dispersion of seller prices quoted in a marketplace.1 As one source of price

Quality of Mass Goods and the Problem of the Representative Consumer

Most economic models assume the existence of a representative consumer with mean preferences, which is an obvious simplification. Consumers unveil their heterogeneous preferences through continual

Advertising with Discretionary Search

We examine a market for a search good in which consumers are uncertain about the firm’s product quality, but may search to gather information before buying. We show that credible information can be

Asymmetric Information and Consumer Demand

In the paper study the peculiarities of the formation the consumer demand for durable goods, the so-called «experience goods» in markets with asymmetric information. In the known literature sources

Dynamic Competition with Experience Goods

This paper considers dynamic competition in the case in which consumers are only able to learn about their preferences for a certain product after experiencing it. After trying a product a consumer

Quality Uncertainty, Search, and Advertising

consumers. In this paper, we begin to remedy this omission by developing a formal model that shows how risk affects the decisions of riskaverse consumers regarding the amount of search and whether or

Demand and Supply Determinants of Advertising Intensity Among Convenience Goods

During the past fifteen years, considerable attention has been given by economists to advertising. Porter [9] and Nelson [6] recognized that the use of advertising by producers and its effect on



Information in the Labor Market

  • G. Stigler
  • Economics
    Journal of Political Economy
  • 1962
rfl9H E young person entering the labor market for the first time has an . immense number of potential employers, scarce as they may seem the first day. If he is an unskilled or a semiskilled worker,

The Economics of Information

The identification of sellers and the discovery of their prices is given as an example of the role of the search for information in economic life.

Government Printing Office, 1966. (b) . Census of Manufacturing

  • Selected Services, Summary Statistics
  • 1963

Consumer Reports, vols

    Bureau of the Census, Fifteenth Census of the United States

    • Distribution. Pt. 1: Retail Distribution. Washington: Government Printing Office
    • 1930